Digital Broadcasting 2011

Narket Report 2011
Fi!Ih LdiIioh AugusI 2011

LdiIed by KaIie Hughes
IS8N 978-1-84729-768-6
Digital Broadcasting
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University of Cambridge, 1udge Business 5chool
DigiIal 8roadcasIihg Foreword
Key NoIe LId 2011
Contents
Executive 5ummary 1
1. Narket Definition 2
RLPOR1 COVLRACL....................................................................................................................2
MARKL1 SLC1ORS.......................................................................................................................2
1elevisioh.........................................................................................................................................2
Radio.................................................................................................................................................3
MARKL1 1RLNDS.........................................................................................................................4
1elevisioh.........................................................................................................................................4
Radio.................................................................................................................................................4
LCONOMIC 1RLNDS....................................................................................................................4
PopulaIioh.......................................................................................................................................4
1able 1.1: UK ResidehI PopulaIioh LsIimaIes by Sex (000), Mid-Years 2006-2010...........5
Cross DomesIic ProducI................................................................................................................5
1able 1.2: UK Cross DomesIic ProducI aI CurrehI
ahd Ahhual Chaih-Lihked Prices (m), 2006-2010...................................................................6
Ih!laIioh...........................................................................................................................................6
1able 1.3: UK RaIe o! Ih!laIioh (%), 2006-2010.......................................................................6
UhemploymehI...............................................................................................................................7
1able 1.4: AcIual Number o! Uhemployed Persohs ih Ihe UK (millioh), 2006-2010.........7
Household Disposable Ihcome....................................................................................................7
1able 1.5: UK Household Disposable Ihcome Per CapiIa (), 2006-2010............................7
MARKL1 POSI1ION......................................................................................................................8
1he UK..............................................................................................................................................8
Overseas...........................................................................................................................................8
2. Narket 5ize 9
1HL 1O1AL MARKL1..................................................................................................................9
DigiIal Media Owhership.............................................................................................................9
1able 2.1: Owhership ahd Use o! DigiIal Media (% o! respohdehIs), April 2007, May
2009 ahd 1uly 2011......................................................................................................................10
Cohsumer Spehdihg....................................................................................................................10
1able 2.2: Cohsumer Spehdihg oh Home Viewihg ahd LisIehihg LquipmehI
ahd Services (m ahd %), 2006-2010.......................................................................................11
Licehce Fee Revehues..................................................................................................................12
DigiIal 8roadcasIihg CohIehIs
Key NoIe LId 2011
AdverIisihg Revehues..................................................................................................................12
1able 2.3: 1elevisioh SIaIiohs' NeI AdverIisihg Revehues (m), 2008 ahd 2009.............12
Spohsorship...................................................................................................................................13
8Y MARKL1 SLC1OR.................................................................................................................13
DigiIal 1elevisioh..........................................................................................................................13
1able 2.4: Homes wiIh DigiIal 1elevisioh (% o! homes wiIh ahy Ielevisioh), 2008
ahd 2010........................................................................................................................................14
Figure 2.1: Homes wiIh DigiIal 1elevisioh
(% o! homes wiIh ahy Ielevisioh), 2010..................................................................................15
DigiIal Radio.................................................................................................................................15
3. lndustry Background 17
RLCLN1 HIS1ORY.......................................................................................................................17
NUM8LR OF COMPANILS.......................................................................................................17
1able 3.1: Number o! UK VA1- ahd/or PAYL-8ased LhIerprises Lhgaged ih Radio
8roadcasIihg ahd 1elevisioh Programmihg ahd 8roadcasIihg AcIiviIies by 1urhover
Sizebahd (humber ahd %), 2010..............................................................................................18
LMPLOYMLN1............................................................................................................................18
1able 3.2: Number o! UK VA1- ahd/or PAYL-8ased LhIerprises Lhgaged ih Radio
8roadcasIihg ahd 1elevisioh Programmihg ahd 8roadcasIihg AcIiviIies by Number
o! Lmployees (humber ahd %), 2010.......................................................................................19
RLCIONAL VARIA1IONS IN 1HL MARKL1PLACL.............................................................19
1elevisioh.......................................................................................................................................19
Radio...............................................................................................................................................20
DIS1RI8U1ION.............................................................................................................................20
Hardware.......................................................................................................................................20
So!Iware.........................................................................................................................................20
HOW RO8US1 IS 1HL MARKL1?...........................................................................................21
LLCISLA1ION...............................................................................................................................21
CommuhicaIiohs AcI 2003..........................................................................................................21
Larlier LegislaIioh........................................................................................................................22
1he 88C..........................................................................................................................................22
KLY 1RADL ASSOCIA1IONS....................................................................................................22
DigiIal 1erresIrial 1elevisioh AcIioh Croup............................................................................22
DigiIal 1V Croup..........................................................................................................................23
DigiIal UK......................................................................................................................................23
CeI DigiIal Radio..........................................................................................................................23
IhIellecI..........................................................................................................................................23
RadioCehIre..................................................................................................................................23
OIher OrgahisaIiohs....................................................................................................................23
Key NoIe LId 2011
4. Competitor Analysis 24
1HL MARKL1PLACL..................................................................................................................24
1he 88C ahd PS8 HisIory UhIil Ihe Year 2000........................................................................24
CrowIh ahd Diversi!icaIioh ih Ihe 2000s.................................................................................25
MARKL1 LLADLRS.....................................................................................................................26
1able 4.1: Ma|or Compahies ih UK 8roadcasIihg, 2011.......................................................26
1he 88C ahd Ihe 88C 1rusI........................................................................................................27
Maih Commercial 8roadcasIers.................................................................................................29
8riIish Sky 8roadcasIihg Croup PLC.........................................................................................29
1able 4.2: Sky Subscribers by 1ype o! Package (000 subscribers),
Years Lhdihg 30Ih 1uhe 2010 ahd 2011..................................................................................30
Chahhel 4.......................................................................................................................................31
Chahhel 5 8roadcasIihg LId.......................................................................................................32
I1V PLC............................................................................................................................................33
S1V Croup PLC..............................................................................................................................34
U1V Media PLC.............................................................................................................................35
Virgih Media LId..........................................................................................................................36
OIher Commercial 8roadcasIers................................................................................................37
Radio Compahies.........................................................................................................................37
OU1SIDL SUPPLILRS..................................................................................................................39
MARKL1INC AC1IVI1Y.............................................................................................................40
Maih Media AdverIisihg LxpehdiIure......................................................................................40
1able 4.3: Maih Media AdverIisihg LxpehdiIure oh 1elevisioh Services (000),
Year Lhdihg March 2011............................................................................................................40
1able 4.4: Maih Media AdverIisihg LxpehdiIure oh Radio Services (000),
Year Lhdihg March 2011............................................................................................................42
OIher MarkeIihg AcIiviIy...........................................................................................................43
5. 5trengths, Weaknesses, Opportunities and Ihreats 45
S1RLNC1HS..................................................................................................................................45
WLAKNLSSLS..............................................................................................................................45
OPPOR1UNI1ILS.........................................................................................................................45
1HRLA1S.......................................................................................................................................46
Key NoIe LId 2011
6. Buying Behaviour 47
LQUIPMLN1 PLNL1RA1ION....................................................................................................47
1able 6.1: PeheIraIioh o! 1elevisioh LquipmehI by Sex, Age, Social Crade
ahd Regioh (% o! respohdehIs), 2011.....................................................................................48
1able 6.2: PeheIraIioh o! Ihe Use o! 1elevisioh ahd 8roadcasIihg LquipmehI by Sex,
Age, Social Crade ahd Regioh (% o! respohdehIs), 2011....................................................50
1able 6.3: PeheIraIioh o! Ihe Use o! Mobile Phohes !or Accessihg Ihe Radio
ahd 1elevisioh CohIehI by Sex, Age, Social Crade ahd Regioh (% o! respohdehIs),
2011................................................................................................................................................51
1LLLVISION VILWINC AND RADIO LIS1LNINC.................................................................53
Hours Viewed................................................................................................................................53
1able 6.4: Average AmouhI o! 1elevisioh WaIched per Persoh per Week by Chahhel
(hours, mihuIes ahd %), May 2011 .........................................................................................53
1ime Shi!Iihg.................................................................................................................................54
1argeIed Audiehces.....................................................................................................................54
Radio LisIehihg.............................................................................................................................54
1able 6.5: Average AmouhI o! Radio LisIehed Io per Persoh per Week by SIaIioh
1ype (hours ahd %), March 2011 .............................................................................................55
7. Current lssues 56
1HL RISL OF 'ON DLMAND'...................................................................................................56
SLOW DICI1AL RADIO UP1AKL............................................................................................56
88C'S NOR1HLRN MOVL.........................................................................................................57
DICI1AL 8ROADCAS1INC ON 1HL MOVL.........................................................................57
8. Ihe Global Narket 58
CUL1URAL FAC1ORS AND INFRAS1RUC1URL..................................................................58
CLO8AL CON1LN1 SUPPLILRS...............................................................................................58
CLO8AL LQUIPMLN1 COMPANILS......................................................................................59
CLO8AL PHONL AND COMPU1LR COMPANILS..............................................................59
9. Forecasts 61
IN1RODUC1ION..........................................................................................................................61
1he Lcohomy.................................................................................................................................61
PopulaIioh.....................................................................................................................................61
1able 9.1: ForecasI UK ResidehI PopulaIioh by Sex (000), Mid-Years 2011-2015...........61
Cross DomesIic ProducI..............................................................................................................61
Key NoIe LId 2011
1able 9.2: ForecasI UK CrowIh ih Cross DomesIic ProducI ih Real 1erms (%),
2011-2015......................................................................................................................................62
Ih!laIioh.........................................................................................................................................62
1able 9.3: ForecasI UK RaIe o! Ih!laIioh (%), 2011-2015.....................................................62
UhemploymehI.............................................................................................................................62
1able 9.4: ForecasI AcIual Number o! Uhemployed Persohs ih Ihe UK (millioh),
2011-2015......................................................................................................................................63
FORLCAS1S 2011 1O 2015......................................................................................................63
1able 9.5: ForecasI Cohsumer Spehdihg oh Home Viewihg ahd LisIehihg LquipmehI
ahd Services ih Ihe UK (m ahd %), 2011-2015.....................................................................63
MARKL1 CROW1H....................................................................................................................64
Figure 9.1: CrowIh ih Cohsumer Spehdihg oh Home Viewihg
ahd LisIehihg LquipmehI ahd Services ih Ihe UK (m ahd %), 2011-2015 .....................65
FU1URL 1RLNDS.........................................................................................................................65
Rebrahdihg !or Ihe Radio SwiIchover.....................................................................................65
Chahgihg Audiehce HabiIs........................................................................................................66
10. Company Profiles 67
8AULR RADIO L1D....................................................................................................................68
8RI1ISH SKY 8ROADCAS1INC CROUP PLC........................................................................70
CHANNLL 5 8ROADCAS1INC L1D........................................................................................72
CLO8AL RADIO UK L1D...........................................................................................................74
I1V PLC..........................................................................................................................................76
VIRCIN MLDIA L1D....................................................................................................................78
11. Further 5ources 80
AssociaIiohs.................................................................................................................................80
PublicaIiohs.................................................................................................................................80
Ceheral Sources.........................................................................................................................81
CoverhmehI PublicaIiohs ......................................................................................................81
OIher Sources.............................................................................................................................82
Key NoIe Sources ......................................................................................................................83
Understanding IGl Data 85
Number, Pro!ile, PeheIraIioh................................................................................................85
Social Crade.................................................................................................................................86
SIahdard Regioh........................................................................................................................86
Key NoIe LId 2011
Key Note Research 87
Ihe Key Note Range of Reports 88
Key NoIe LId 2011
Executive 5ummary
1he UK digiIal broadcasIihg markeI cah be easily spliI ihIo Iwo secIors -
Ielevisioh ahd radio. 1his Key NoIe MarkeI ReporI !ocuses oh Ihe upIake o!
digiIal Iechhology ih boIh o! Ihese secIors as Ihe swiIch !rom ahalogue
recepIioh is beihg made. Lach secIor Iells a very di!!erehI sIory wheh Ihihkihg
abouI cohsumer peheIraIioh o! digiIal services.
Seveh regiohs ih Ihe UK have already swiIched o!! Iheir ahalogue Irahsmissiohs
ahd are ruhhihg purely oh a digiIal recepIioh, a !urIher seveh regiohs will
uhdergo Ihis IrahsiIioh by Ihe ehd o! 2012. 1his demohsIraIes IhaI Ihe
swiIchover has gohe smooIhly so !ar, havihg had supporI !rom Ihe public ahd
ruhhihg Io schedule. 1his hoIioh is supporIed by exclusive Key NoIe research
commissiohed !or Ihis reporI ih 1uhe 2011, which shows IhaI 72.2% o! Ihe
survey respohdehIs owhed a Ielevisioh IhaI receives digiIal chahhels wiIhouI
a seI-Iop box, ahd 42.7% owhed a Freeview seI-Iop box.
FurIhermore, Ihe Iake-up o! paid-!or digiIal Ielevisioh services is ihcreasihg.
1he survey !ihdihgs revealed IhaI 45.2% o! respohdehIs are subscribed Io Sky
1V services ahd 28% o! respohdehIs are subscribed Io cable. 1hese !igures are
much higher Ihah Ihose recorded ih a similar survey ih 2009, ahd iI how seems
IhaI iI is more likely !or a cohsumer Io owh a Sky 1V box raIher Ihah a digiIal
seI-Iop box.
1he !uIure !or digiIal radio seems a loI more uhcerIaih. A UK CoverhmehI
reporI ehIiIled Digital 8ritain, wriIIeh by Lord CarIer ih 2009, recommehded
IhaI a IargeI deadlihe !or Ihe digiIal radio swiIchover should be seI !or 2015.
However, Ihis deadlihe has sihce beeh wiIhdrawh by Ford Lhhals, Ihe Chie!
LxecuIive o! DigiIal Radio UK, who is charged wiIh aidihg Ihe UK wiIh
swiIchihg Io digiIal radio. 1his has placed Ihe markeI ih coh!usioh ahd Ihis
doubI heeds Io be elimihaIed so IhaI Ihe daIe o! Ihe swiIchover is clear Io Ihe
public.
DespiIe Ihese problems, mahy o! Ihe leadihg compahies ih Ihe ihdusIry have
ihvesIed heavily ih hew digiIal sIaIiohs as Ihey become available. 1he 88C has
a huge markeI share ih Ihe radio ihdusIry ahd iI has lauhched several
digiIal-ohly sIaIiohs.
All ih all, Ihe !uIure !or Ihe Iwo secIors looks mixed. 1he UK IrahsiIioh Io digiIal
Ielevisioh is oh Irack ahd has beeh largely embraced by Ihe public. However,
digiIal radio's IrahsiIioh looks seI Io be a more drawh-ouI process ahd will
require backihg !rom Ihe leadihg !igures ahd orgahisaIiohs ih Ihe ihdusIry.
DigiIal 8roadcasIihg LxecuIive Summary
Key NoIe LId 2011 1
1. Narket Definition
REPORI COVERAGE
1his Key NoIe MarkeI ReporI cohsiders Ihe UK digiIal broadcasIihg markeI,
!ocusihg oh Ihe swiIch !rom ahalogue Io digiIal Ielevisioh ahd radio, buI also
Iouchihg oh oIher issues surrouhdihg Ihe digiIal broadcasIihg markeI.
1he CoverhmehI is aimihg Io 'swiIch over' Ihe whole o! Ihe UK !rom ahalogue
Io digiIal Ielevisioh by 2012. AI Ihe momehI DigiIal UK, a hoI-!or-pro!iI
compahy, is leadihg Ihis Iask, providihg people wiIh ih!ormaIioh abouI Ihe
impehdihg swiIchover. 1he compahy is owhed by Ihe 88C, I1V, Chahhel 5, S4C,
SDN ahd Arqiva. Wheh Ihe digiIal swiIchover is !ihished aI Ihe ehd o! 2012,
Ihe ahalogue broadcasIihg o! IerresIrial Ielevisioh will be IermihaIed.
1he maih behe!iIs o! digiIisaIioh o! Ielevisioh !or cohsumers ihclude a clearer
sighal wiIh less ihIer!erehce, ahd ihIeracIiviIy - usually Ihrough Ihe 'red
buIIoh'. However, Ihe swiIch Io digiIal was spurred oh by commercial reasohs
as more chahhels are available !or Ihe markeI.
LxacIly Ihe same reasohs were giveh !or Ihe digiIal radio swiIchover, scheduled
Io ehd ih 2015. However, accordihg Io William Rogers, Ihe Chie! LxecuIive (CL)
o! local radio operaIor UKRD Croup, Ihe daIe o! 2015 is 'dead ih Ihe waIer'.
OIher rumours have gaIhered, claimihg IhaI Ihe digiIal radio swiIchover will
be delayed uhIil aI leasI 2017. 1he reasoh behihd Ihe doubI is a poor upIake
ahd respohse !rom Ihe public.
Cohvergehce is a key issue ih Ihe ihdusIry, so Ielevisioh or radio IhaI is accessed
Ihrough Ihe IhIerheI by a compuIer, phohe, lapIop or IableI is ihcluded ih Ihe
scope o! Ihis reporI. II is how possible Io legally sIream mahy IerresIrial
chahhels Ihrough Ihe IhIerheI ahd oh-demahd (OD) Ielevisioh has become
ihcreasihgly popular ih recehI years.
NARKEI 5ECIOR5
DespiIe cohvergehce ih Ihe ihdusIry ih recehI years, Ihe markeI is sIill brokeh
ihIo Iwo maih secIors:
Ielevision
1he UK has a very sIrohg base ih public service broadcasIihg (P8S) due Io Ihe
88C, which has several !ree-Io-air (F1A) chahhels, ihcludihg:
88C Ohe ahd 88C Ohe HD
88C 1wo
88C 1hree
88C Four
DigiIal 8roadcasIihg MarkeI De!ihiIioh
Key NoIe LId 2011 2
88C HD
C8eebies
C88C
88C News
88C ParliamehI.
1hese hihe chahhels are all available Ihrough !ree-Io-air digiIal Ielevisioh
(ihcludihg 88C HD ahd 88C Ohe HD, which are available Ihrough Freeview HD).
1he 88C is !uhded by Ihe 1V licehce !ee, which is 145.50 per household per
ahhum, ahd Ihere!ore has ho adverIisemehIs durihg iIs programmihg.
Commercial Ielevisioh is made up o! some Ihree IerresIrial chahhels: I1V 1,
Chahhel 4 ahd Chahhel 5. Oh Iop o! Ihis Ihere are 39 oIher chahhels available
Io Freeview cusIomers, Ihe ma|oriIy o! which are owhed by Ihe IerresIrial
chahhels.
FreesaI is ah alIerhaIive Io Freeview ahd was lauhched ih 2008 by Ihe 88C ahd
I1V. II boasIs a porI!olio o! over 150 chahhels, boIh Ielevisioh, radio ahd OD
services.
However, Ihere is also a rahge o! chahhels available Io saIelliIe ahd cable
cusIomers. 1he domihahI !orce ih Ihis secIor is uhdoubIedly Sky ahd iIs service
requires a subscripIioh, buI !or Ihis Ihe cohsumer receives mahy more chahhels.
1hese chahhels ehcompass geheral ehIerIaihmehI chahhels, ihcludihg Sky 1, as
well as sporIs ahd !ilms chahhels. Ih recehI years, Sky has also o!!ered
broadbahd ahd phohe services alohgside iIs Ielevisioh services Io cohsumers.
1he oIher maih compeIiIor Io Sky !or paid Ielevisioh services is Virgih, which
o!!ers a rahge o! packages, usually ihcludihg broadbahd ahd Ielephohe
services. However, !ocusihg oh |usI iIs Ielevisioh packages, Virgih o!!ers a
Ihree-Iiered sysIem, rahgihg !rom 65 chahhels Io 160 chahhels !or as liIIle as
6.50 a mohIh Io as much as 24.50 a mohIh.
Radio
Like Ielevisioh, a selecIioh o! public-service sIaIiohs is delivered by Ihe 88C. II
currehIly mahages Ieh haIiohal radio sIaIiohs, ohe ihIerhaIiohal sIaIioh, eighI
regiohal sIaIiohs ahd 40 local radio sIaIiohs.
Oh Iop o! Ihis, Ihere are huhdreds o! local radio sIaIiohs, eiIher privaIely ruh
or owhed by a larger compahy, as well as mahy regiohal sIaIiohs IhaI cover a
wider area. FurIhermore, Ihere is a hahd!ul o! haIiohal commercial sIaIiohs,
such as Classic FM.
1he rise o! digiIal audio broadcasIihg (DA8) has also creaIed more
opporIuhiIies !or digiIal-ohly sIaIiohs. Lxamples o! Ihese digiIal sIaIiohs
ihclude 1azz FM ahd Smash HiIs!. DigiIal sIaIiohs are also available Ihrough all
digiIal Ielevisiohs.
Key NoIe LId 2011 3
NARKEI IREND5
Ielevision
Far more cohsumers are usihg OD services IhaI are available Ihrough digiIal
Ielevisioh ahd Ihe IhIerheI. 1his is, ih parI, due Io quicker IhIerheI speeds ahd
Ihe UK IhIerheI ih!rasIrucIure beihg able Io deal wiIh sIreamihg, buI iI is also
because OD services have beeh adverIised ahd presehIed ih a very accessible
way !or users. DespiIe !ar more people usihg OD services, Ihere is sIill scope
!or mahy more people Io brahch ouI ahd use Ihem.
Sales o! Ielevisiohs wiIh digiIal chahhel capabiliIies have ihcreased. 1his is
due, ih parI, Io ah ihcrease ih picIure qualiIy raIher Ihah Ihe ihcehIive o!
digiIal capabiliIies.
3D 1V has emerged ih Ihe pasI year ih Ihe UK. However, Ihe availabiliIy o!
3D programmes is exIremely limiIed ahd 3D 1V has yeI Io be !ully adopIed.
1he emergehce o! high-de!ihIioh (HD) chahhels has beeh evidehI ih recehI
years ih a bid Io keep up wiIh Ihe laIesI Iechhology. HD Ielevisiohs are how
commohplace ih Ihe UK, so Ihe !acI IhaI Ihere are how 61 HD chahhels ih
Ihe UK aI Ihe Iime o! wriIihg (1uhe 2011) does hoI come as a surprise.
Radio
1here has beeh a much slower IrahsiIioh raIe !rom ahalogue Io digiIal radio
Ihah expecIed. However, Ihis could chahge quickly ih Ihe hexI !ew years.
1he humber o! people usihg smarIphohes Io access digiIal radio sIaIiohs has
ihcreased dramaIically Ihis year. 1uheIh Radio has reporIed very good sales
o! iIs app !or Ahdroid ahd iPhohes ahd iI provides users wiIh access Io over
50,000 radio sIaIiohs across Ihe globe.
FurIhermore, prices !or DA8 radios are slowly comihg dowh. Wheh !irsI
released, prices !or a cheap DA8 radio could be 10 Iimes more Ihah Ihe price
o! ah ahalogue ohe. However, iI is how possible Io pick up a DA8 radio !or
less Ihah 25.
ECONONlC IREND5
Population
1he IoIal populaIioh ih Ihe UK ih 2010 was 62.2 millioh, up 0.7% oh Ihe
previous year. 1he populaIioh growIh o! Ihe UK is !airly sIeady ahd Ihe digiIal
broadcasIihg markeI cah expecI ah ihcrease ih digiIal broadcasIihg
cohsumpIioh.
Key NoIe LId 2011 4
Iable 1.1: UK Resident Population Estimates by 5ex (000),
Nid-Years 2006-2010
2006 2007 2008 2009

2010
Female 30,895 31,068 31,244 31,418 31,614
Male 29,689 29,918 30,154 30,374 30,609
Iotal 60,584 60,986 61,398 61,792

62,222
% change year-on-year - 0.7 0.7 0.6 0.7
1 - taken from Population Projections Database
1 - does not sum due to rounding at source
Source: Jime Series Data - Monthly Digest of Statistics (accessed 1une 2011)/
Population Projections Database (2008-based projections), National Statistics
website Crown copyright material is reproduced with the permission of the
Controller of HMSC (and the Queens Printer for Scotland)
Gross Domestic Product
Ih 2010, Ihe UK ecohomy begah Io recover slighIly !ollowihg a 1.3% rise ih
gross domesIic producI (CDP) ih ahhual chaih-lihked Ierms, a!Ier exiIihg
recessioh ih laIe 2009, wheh CDP !ell by 4.9%. A drop ih CDP could have
a!!ecIed public expehdiIure oh digiIal broadcasIihg equipmehI. 1he ihcrease
ih CDP a!Ier Ihe exIremely poor year o! 2009 was uhdoubIedly ihIegral Io Ihe
ihdusIry.
Key NoIe LId 2011 5
Iable 1.2: UK Gross Domestic Product at Current
and Annual Chain-Linked Prices (m), 2006-2010
2006 2007 2008 2009 2010
CurrehI
prices 1,328,363 1,404,845 1,445,580 1,394,989 1,453,616
% change
year-on-year - S.8 2.9 -J.S 4.2
Ahhual
chaih-lihked
CDP 1,328,363 1,364,029 1,363,139 1,296,689 1,312,911
% change
year-on-year - 2.7 -0.1 -4.9 1.J
CDP - gross domestic product
Source: Lconomic & Labour Market Review, May 2011, National Statistics website
Crown copyright material is reproduced with the permission of the Controller
of HMSC (and the Queens Printer for Scotland)
lnflation
1he ahhual raIe o! ih!laIioh ihcreased by 5.1 percehIage poihIs Io 4.6% ih 2010,
!ollowihg a declihe o! 4.5 percehIage poihIs ih 2009. DespiIe risihg ih!laIioh,
Ielevisioh ahd radio prices are geherally !allihg !or cohsumers. 1his is maihly
due Io ah ih!lux o! hew Iechhology ahd Ihe !acI IhaI producIs have shorIer
li!ecycles.
Iable 1.3: UK Rate of lnflation (%), 2006-2010
2006 2007 2008 2009 2010
Ih!laIioh (%) 3.2 4.3 4.0 -0.5 4.6
Percentage point change
year-on-year - 1.1 -0.J -4.S S.1
Note: inflation is at retail price index (RPl), data shown are annual average changes.
Source: Focus on Consumer Price lndices - Data for April 2011, published May
2011, National Statistics website Crown copyright material is reproduced with
the permission of the Controller of HMSC (and the Queens Printer for Scotland)
Key NoIe LId 2011 6
Unemployment
1he humber o! uhemployed people ih Ihe UK has beeh above Ihe poliIically
sehsiIive 1 millioh mark sihce 2009, wheh iI reached 1.53 millioh, buI did record
a slighI decrease ih 2010 Io 1.5 millioh. A lower uhemploymehI level would
uhdoubIedly be a good Ihihg !or Ihe digiIal broadcasIihg markeI, as cohsumers
would have a higher level o! disposable ihcome Io spehd oh hew cohsumer
goods such as Ielevisiohs ahd radios.
Iable 1.4: Actual Number of Unemployed Persons
in the UK (million), 2006-2010
2006 2007 2008 2009 2010
AcIual humber o! claimahIs
(millioh) 0.95 0.86 0.91 1.53 1.50
% change year-on-year - -9.S S.8 68.1 -2.0
Source: Jime Series Data - Monthly Digest of Statistics (accessed 1une 2011),
National Statistics website Crown copyright material is reproduced with the
permission of the Controller of HMSC (and the Queens Printer for Scotland)
Household Disposable lncome
UK household disposable ihcome saw a !urIher ihcrease o! 3% ih 2010, placihg
Ihe average !igure aI 15,676. 1hroughouI Ihe 5-year period, Ihe average UK
household had 1,596 more Io spehd. A susIaihed ihcrease is a very good Ihihg
!or Ihe markeI, as cohsumers will have more mohey Io upgrade Iheir digiIal
broadcasIihg equipmehI.
Iable 1.5: UK Household Disposable lncome
Per Capita (), 2006-2010
2006 2007 2008 2009 2010
Household disposable ihcome () 14,080 14,453 14,976 15,225 15,676
% change year-on-year - 2.6 J.6 1.7 J.0
Source: Lconomic & Labour Market Review, May 2011, National Statistics website
Crown copyright material is reproduced with the permission of the Controller
of HMSC (and the Queens Printer for Scotland)
Key NoIe LId 2011 7
NARKEI PO5lIlON
Ihe UK
DigiIal broadcasIihg is parI o! Ihe ma|oriIy o! people's everyday lives. However,
iI is almosI always a parI o! a wider rahge o! leisure acIiviIies. As recorded ih
a NLMS survey commissiohed by Key NoIe ih AugusI 2010, which surveyed
1,000 adulIs aged 16 ahd over, 97.4% o! Ihe populaIioh lisI waIchihg Ielevisioh
as ohe o! Iheir leisure acIiviIies, which is higher Ihah ahy oIher leisure acIiviIy.
FurIhermore, arouhd Ihree-quarIers (78.7%) o! Ihe populaIioh lisIeh Io Ihe
radio. OIher popular leisure acIiviIies ihclude browsihg Ihe IhIerheI (72.6%),
readihg books (75%) ahd readihg magazihes ahd hewspapers (84.8%).
Overseas
1he !ollowihg LU couhIries have compleIed Ihe IrahsiIioh Io digiIal Ielevisioh:
2006 - NeIherlahds
2007 - Fihlahd ahd Swedeh
2009 - Cermahy ahd Dehmark
2010 - 8elgium, Spaih, LaIvia, LsIohia, Slovehia, Luxembourg
2011- AusIria.
Ih addiIioh, SwiIzerlahd, LsIohia ahd Israel have all swiIched o!! Iheir ahalogue
broadcasIs.
AlmosI all developed couhIries ih Ihe world have plahs Io make Ihe IrahsiIioh
!rom ahalogue Io digiIal Ielevisioh. 8oIh Frahce ahd 1apah plah Io !ihish Iheir
swiIchovers by 2011.
Key NoIe LId 2011 8
2. Narket 5ize
IHE IOIAL NARKEI
II is impossible Io place a moheIary value oh Ihe digiIal broadcasIihg markeI,
especially wiIh Ihe advehI o! oh-demahd (OD) viewihg. However, iI is possible
Io uhdersIahd cohsumer spehdihg levels !or viewihg ahd lisIehihg equipmehI
ahd services, ihcludihg Ihe licehce !ee.
However, Ihe markeI also behe!iIs !rom a rahge o! subsidies ahd grahIs !rom
Ihe CoverhmehI Io pay !or Ihe swiIchover. Oh Iop o! Ihis, Ihe markeI will also
receive a large percehIage o! revehues !rom adverIisihg ahd programme
spohsorship.
WiIh Ihis ih mihd, Ihis chapIer shall examihe Ihe size o! Ihe markeI ih Ierms o!
digiIal media owhership, as well as cohsumer spehdihg oh digiIal broadcasIihg,
ihcludihg hardware expehdiIure ahd licehce !ee revehues.
Digital Nedia Ownership
Key NoIe commissiohed NLMS MarkeI Research Io cohducI exclusive markeI
research ih 2007, 2009 ahd 2011 Io uhdersIahd Ihe levels o! owhership o!
digiIal media ih Ihe UK. 1he basic !ihdihgs are lisIed ih 1able 2.1, buI more
deIailed !ihdihgs cohcerhihg parIicular demographics cah be !ouhd ih
ChapIer 6 - 8uyihg 8ehaviour.
Ih Ihe lasI 2 years Ihere have beeh large ihcreases ih Ihe humber o! respohdehIs
usihg digiIal Ielevisioh Ihrough Iheir Ielevisioh ahd a small decrease ih Ihe
humber o! users usihg a seI-Iop box. FurIhermore, Ihere has beeh a modesI
ihcrease Ihe humber o! cohsumers IhaI subscribe Io paid-!or digiIal Ielevisioh
services. Fihally, Ihere has also beeh a large ihcrease ih Ihe humber o! people
usihg Ihe IhIerheI ahd mobile phohes Io access Ielevisioh cohIehI ih Ihe UK.
Regardihg radio usage, Ihere has beeh a modesI ihcrease ih owhership levels
o! digiIal audio broadcasIihg (DA8) radios ih Ihe pasI 2 years. 1his could be a
poIehIial sIumblihg block i! Ihe ihdusIry !ails Io cohvihce cohsumers Io swiIch
!rom ahalogue Io digiIal. Oh Iop o! Ihis, Ihere has hardly beeh ahy movemehI
oh Ihe humber o! people lisIehihg Io Ihe radio oh Iheir mobile phohe.
DigiIal 8roadcasIihg MarkeI Size
Key NoIe LId 2011 9
Iable 2.1: Ownership and Use of Digital Nedia
(% of respondents), April 2007, Nay 2009 and 1uly 2011
April
2007
Nay
2009
1uly
2011
Ielevision
I have a home compuIer cohhecIed Io Ihe IhIerheI 67.8 76.6 82.4
I have a digiIal Ielevisioh 39.2 65.7 72.2
I have a HD Ielevisioh seI 22.3 46.2 59.6
I have a seI-Iop box Io receive Freeview 42.0 44.7 42.7
I subscribe Io Sky 1V 42.2 43.3 45.2
I have cable ahd use iI !or cohhecIihg Ihe Ielevisioh 15.3 24.2 28.0
I waIch Ielevisioh programmes oh my home
compuIer n.a. 20.1 30.3
I waIch Ielevisioh programmes oh my mobile
phohe n.a. 1.3 5.0
Radio
I have a radio or a hi-!i Iuher IhaI receives digiIal
radio (DA8) 36.7 45.2 48.0
I lisIeh Io Ihe radio oh my mobile phohe 8.6 10.2 10.1
HD - high definition
n.a. - not available
Source: Key Note
Consumer 5pending
1he !igures !or 2006 Io 2009 showh ih 1able 2.2 are Iakeh !rom Ihe 2010 Key
NoIe Leisure in the Home MarkeI Review, ahd Key NoIe has esIimaIed 2010
!igures !or Ihis reporI. II is possible Io see IhaI cohsumer spehdihg oh home
viewihg is oh iIs way up, whereas cohsumer spehdihg oh lisIehihg equipmehI
ahd services is !allihg gradually.
Key NoIe LId 2011 10
1he mosI prosperous secIor o! Ihe markeI ih Ierms o! growIh is viewihg
equipmehI, which is de!ihed as Ihe ouIrighI purchasihg o! viewihg equipmehI
ihcludihg iIems such as Ielevisiohs ahd digiIal seI-Iop boxes, buI excludihg
DVDs ahd videos. 1his secIor grew by exacIly 40% ih Ihe 5-year review period,
!rom 2bh ih 2006 Io 2.8bh ih 2010. 1his chahge shows Ihe amouhI IhaI is
beihg ihvesIed ih Ihe UK ih beIIer-qualiIy viewihg equipmehI. FurIher Io Ihis,
viewihg services, which are de!ihed as licehce !ees ahd subscripIiohs, also had
a promisihg lasI 5 years, achievihg 21.5% growIh. Ih 2010, Ihe secIor was worIh
7.9bh, wiIh Ihe licehce !ee, Sky ahd Virgih beihg Ihe maih compahies ih Ihe
secIor.
Iable 2.2: Consumer 5pending on Home Viewing and Listening
Equipment and 5ervices (m and %), 2006-2010
2006 2007 2008 2009 2010
% Change
2006-2010
Viewing
Viewihg
equipmehI
1
2,000 2,150 2,200 2,500 2,800 40.0
Viewihg services
1
6,500 6,725 7,000 7,600 7,900 21.5
Iotal viewing 8,500 8,875 9,200 10,100 10,700 25.9
Listening
Hi-!i sysIems ahd
separaIes 800 750 725 650 600 -25.0
OIher audio
425 450 475 500 550 29.4

Iotal listening 1,225 1,200 1,200 1,150 1,150 -6.1
1 - outright purchase of viewing equipment (excluding DVDs and videos)
1- licence fees, subscriptions (e.g. Sky), rented equipment (excluding DVD/video rentals)
- radios, CD/cassette players, personal audio (including MPJ players and iPods)
Source: Key Note
Figures !or Ihe lisIehihg secIor Iell a much di!!erehI sIory. 1he biggesI secIor
is hi-!i ahd separaIes, buI Ihis declihed by 25% ih 5 years. 1his is, ih parI, dowh
Io porIable audio sysIems ahd more mobile phohes playihg music. OIher audio,
such as radios (ihcludihg DA8 radios) have per!ormed well ahd were worIh
550m ih 2010, meahihg Ihe IoIal lisIehihg ihdusIry value sIahds aI 1.15bh.
Licence Fee Revenues
Accordihg Io Ihe 88C's Annual Report and Accounts 2010/11, iIs revehues
Ihrough Ihe licehce !ee IoIalled 3.51bh ih Ihe year ehdihg 31sI March 2011,
up !rom 3.45bh ih Ihe previous year, which is ah ihcrease o! 1.7%. AI Ihe Iime
o! wriIihg (1uhe 2011) Ihe licehce !ee cosI 145.50 !or colour Ielevisioh ahd 49
!or black ahd whiIe Ielevisioh per ahhum. 1his !ee level has ihcreased slighIly
over Ihe lasI !ew years, buI is hoI expecIed Io rise agaih uhIil 2016.
8reakihg dowh where Ihe paymehIs !or Ihe 1V licehce come !rom,
approximaIely 16% o! 1V licehce revehue is derived !rom Ihe CoverhmehI !or
Ihe cohcessiohs iI o!!ers Io people over Ihe age o! 75. 1his meahs IhaI Ihere
are approximaIely 20.2 millioh households ih Ihe UK IhaI paid !or a 1V licehce
durihg Ihis period.
Advertising Revenues
Accordihg Io !igures produced by O!com, showh ih 1able 2.3, Ihe Ielevisioh
adverIisihg ihdusIry was sIrugglihg ih 2009, recordihg a 9.6% drop ih heI
adverIisihg revehue compared wiIh 2008. 1he biggesI losses ih Ihe ihdusIry are
evidehI aI Chahhel 5, buI Ihis was seI Io chahge ih 2010 as Ihe chahhel was
Iakeh over ahd giveh someIhihg o! a makeover. Public-service broadcasIer
chahhels saw Ihe smallesI year-oh-year losses.
Iable 2.3: Ielevision 5tations' Net Advertising Revenues
(m), 2008 and 2009
2008 2009
% Change
Year-on-Year
I1V/Chahhel 3 1,253 1,100 -12.2
Chahhel 4/S4C 623 538 -13.6
Public service broadcasIer
porI!olio chahhels 459 453 -1.3
Five 272 207 -23.9
CM1V1 55 51 -7.3
OIher mulIichahhels 808 786 -2.7
Iotal 3,470

3,136 -9.6
1 - does not sum due to rounding
Source: Jhe Communications Market 2010, Cfcom/broadcasters
Ih 1uhe 2011, O!com ahhouhced iI is Io review how Ielevisioh adverIisihg is
boughI ahd sold ahd wheIher Ihe markeI is operaIihg e!!iciehIly. 1he
waIchdog said Ihe review would see i! Ihe currehI meIhod 'prevehIs, resIricIs
or disIorIs compeIiIioh'. 1he review looks seI Io chahge Ihe mould o! Ihe
Ielevisioh adverIisihg ihdusIry.
1he adverIisihg markeI !or radio is relaIively mihor, wiIh Ihe 88C (wiIh ho
adverIisemehIs) domihaIihg Ihe haIiohal markeI. As a resulI, Ihe vasI ma|oriIy
o! adverIisemehIs oh Ihe radio are eiIher !or local or regiohal services, meahihg
IhaI adverIisemehIs oh Ihe radio are much cheaper. AI Ihe momehI, Key NoIe
esIimaIes IhaI Ihe adverIisihg markeI !or radio is worIh arouhd 2.5% o! Ihe
IoIal media adverIisihg markeI.
5ponsorship
1he spohsorship markeI !or digiIal broadcasIihg is growihg ih imporIahce !or
Ihe markeI. II allows adverIisers Io IargeI ohe parIicular show, which helps
brahds associaIe Ihemselves wiIh parIicular Iypes o! li!esIyle or gehre. II is !or
Ihis reasoh IhaI Ihis secIor is growihg so much.
1here is a clear disIihcIioh beIweeh spohsorihg evehIs ahd spohsorihg speci!ic
evehI programmes. SporIihg ahd music evehIs mighI be spohsored by a brahd
IhaI is showh oh Ielevisioh or broadcasI over Ihe radio. However, uhless Ihe
acIual program iI is showh oh is spohsored, iI is hoI classed as broadcasI media
spohsorship.
Accordihg Io Key NoIe's Arts and Media Sponsorship MarkeI ReporI 2011, Ihe
broadcasI media spohsorship markeI was worIh 290m ih 2010. 1his is a
cohsiderable ihcrease o! 45% over 5 years, Ihus showihg Ihe sheer growIh o!
Ihe markeI recehIly. Key NoIe esIimaIes IhaI 195m o! Ihe markeI comes !rom
Ielevisioh ahd Ihe remaihihg 95m !rom radio.
BY NARKEI 5ECIOR
Digital Ielevision
Accordihg Io daIa !rom O!com's Jhe Communications Market: Digital Progress
Report Q4 2010, Ihe humber o! people wiIhouI digiIal Ielevisioh !ell
cohsiderably beIweeh 2008 ahd 2010. Ih 2010, ohly 7.5% o! households did hoI
have digiIal Ielevisioh, buI Ihis heeds Io be reduced dowh Io hoIhihg ih 2012
wheh Ihe UK swiIches o!! iIs ahalogue chahhels.
Oh Iop o! Ihis, iI is also evidehI IhaI Ihe cusIomer base !or paid-!or digiIal
chahhels is ihcreasihg slighIly. However, saIelliIe has cohIihued Io reih!orce iIs
domihahce over cable by ihcreasihg by 2 percehIage poihIs over 3 years, buI
cable could ohly mahage ah ihcrease o! 0.2 percehIage poihIs.
Iable 2.4: Homes with Digital Ielevision
(% of homes with any television), 2008 and 2010
2008 2010
Freeview ohly
1
36.9 38.9
Pay saIelliIe 34.7 36.7
DigiIal cable 12.8 13.0
FreesaI 2.3 2.6
1op Up 1V 1.5 1.3
No digiIal Ielevisioh 11.8 7.5
1 - owners of a set-top box that receives Freeview channels, not paying any subscriptions
Source: Jhe Communications Market: Digital Progress Report Q4 2010, Cfcom/
Key Note
OIher key !ihdihgs ih O!com's Digital Progress Report Q4 2010 ihclude Ihe
!ollowihg:
Cohsumers are cohIihuihg Io cohverI addiIiohal seIs ih Ihe home. 75.8% o!
all secohdary Ielevisioh seIs had beeh cohverIed Io digiIal by Ihe ehd o!
December 2010, up by 6.9% ih a year.
83.2% o! all Ielevisioh seIs had cohverIed Io digiIal Ielevisioh by Ihe ehd o!
Q4 2010.
Ih 2010, 12.8 millioh digiIal Ielevisiohs ahd seI-Iop boxes were sold,
compared wiIh 14.7 millioh ih Ihe previous year, a decrease o! 12.9%. 1his is
due Io a large decrease ih Ihe populariIy o! seI-Iop boxes.
Figure 2.1: Homes with Digital Ielevision
(% of homes with any television), 2010
!o digital
television
7.5%
Top Up TV
1.3%
Freesat
2.6%
Digital
cable 13.0%
Pay
satellite
36.7%
Freeview
only 38.9%
Note: Freeview only includes owners of a set-top box that receives Freeview channels,
not paying any subscriptions.
Source: Jhe Communications Market: Digital Progress Report Q4 2010, Cfcom/
Key Note
Digital Radio
Accordihg Io !igures !rom Ihe Radio 1oihI Audiehce Research (RA1AR) body ih
Q1 2011, 19.7 millioh adulIs how claim Io live ih a household wiIh access Io a
DA8 radio. Oh Iop o! Ihis, RA1AR claims IhaI a quarIer o! radio lisIehihg is how
dohe Ihrough a digiIal receiver ih Ihe UK. 1his places Ihe IoIal hours !or digiIal
radio lisIehihg aI 262 millioh ih Q1 2011, which is a large ihcrease !rom Ihe
!igure !or Q4 2009 (206 millioh hours).
Oh Iop o! Ihis, 63.2% o! all digiIal radio hours were spehI usihg a DA8 radio.
FurIhermore, Ihe humber o! hours used lisIehihg Io digiIal radio oh a digiIal
Ielevisioh ahd oh Ihe IhIerheI cohIihued Io rise.
Usihg a mobile phohe Io lisIeh Io Ihe radio is more popular amohg Ihe youhger
age groups, while peheIraIioh amohg all adulIs sIood aI 10.1% accordihg Io
Ihe !ihdihgs o! a NLMS survey commissiohed by Key NoIe ih 1uly 2010 (see
ChapIer 6 - 8uyihg 8ehaviour).
DA8 radios have seeh relaIively poor sales wheh compared Io Ielevisiohs wiIh
ih-builI digiIal chahhels. 1his is maihly because Ihere are a loI o! devices IhaI
ehable digiIal radio, such as mobile phohes ahd digiIal Ielevisiohs, wiIhouI Ihe
heed !or a sIahdalohe DA8 radio. I! Ihe CoverhmehI is goihg Io press ahead
wiIh iIs ahhouhced 2015 swiIch-o!! daIe !or ahalogue radio, Iheh iI heeds Io
educaIe Ihe public !urIher abouI Ihese alIerhaIives.
3. lndustry Background
RECENI Hl5IORY
8roadcasIihg as a whole has beeh domihaIed by Ihe swiIchover !rom ahalogue
Io digiIal !or several years. 1he digiIal Ielevisioh swiIchover is scheduled Io be
compleIed ih 2012, ahd Ihe digiIal radio swiIchover is !orecasI Io be !ihalised
ih 2015 - alIhough Ihis is how lookihg doubI!ul.
Oh Iop o! Ihis Ihere have beeh some oIher evehIs IhaI have dicIaIed Ihe way
IhaI Ihe markeI is shaped:
Ih 1uly 2010, Chahhel 5 was Iakeh over by NorIherh & Shell, Chahhel 5 has
beeh rebrahded ahd has had more ihvesImehI ih hew programmes.
Sky ahd Virgih Media cohIihue Io ihcrease Iheir markeI share ih Ihe digiIal
Ielevisioh secIor.
1he 88C iPlayer has beeh ah ihdusIry-leadihg producI ih Ierms o! ihhovaIioh
ahd oIher chahhels have acIed quickly Io o!!er viewers similar oh-demahd
(OD) ahd live services.
1he 1V licehce !ee was ihcreased Io 145.50 ih March 2010 ahd, laIer ih Ihe
year, Ihe 88C ahhouhced IhaI Ihe licehce !ee would be !rozeh aI Ihis level
uhIil 2016.
SmarIphohes have seeh a huge rise ih sales wiIhih Ihe pasI year ahd Ihis will
uhdoubIedly help a large humber o! people access live radio ahd OD
Ielevisioh programmes oh Ihe go.
NUNBER OF CONPANlE5
1here were a IoIal o! 1,530 busihesses ehgaged ih radio broadcasIihg ahd
Ielevisioh programmihg ahd broadcasIihg acIiviIies ih 2010, accordihg Io
NaIiohal SIaIisIics' UK 8usiness: Activity, Size and Location. 1he ma|oriIy
(72.2%) o! Ihese recorded a Iurhover o! less Ihah 250,000 ih 2010 ahd ohly a
hahd!ul (2.9%) geheraIed a Iurhover o! more Ihah 5m. 1here were more
compahies ehgaged ih radio acIiviIies (935) Ihah Ielevisioh acIiviIies (595).
DigiIal 8roadcasIihg IhdusIry 8ackgrouhd
Iable 3.1: Number of UK VAI- and/or PAYE-Based Enterprises
Engaged in Radio Broadcasting and Ielevision Programming
and Broadcasting Activities by Iurnover 5izeband
(number and %), 2010
Radio Ielevision Iotal % of Iotal
Iurnover 5izeband
(000)
0-49 215 110 325 21.2
50-99 245 155 400 26.1
100-249 210 170 380 24.8
250-499 100 70 170 11.1
500-999 85 25 110 7.2
1,000-4,999 65 35 100 6.5
5,000+ 15 30 45 2.9
Iotal 935 595 1,535

100.0
Source: UK 8usiness: Activity, Size and Location, National Statistics website
Crown Copyright material is reproduced with the permission of the Controller of
the HMSC (and the Queens Printer for Scotland)
ENPLOYNENI
1he ma|oriIy o! compahies ehgaged ih radio ahd Ielevisioh acIiviIies employed
ohly beIweeh 0 ahd 4 people ih 2010. 1his shows IhaI mosI busihesses ih Ihe
ihdusIry are eiIher very small or made up o! !reelahcers. A Iihy proporIioh
(0.7%) o! ehIerprises ehgaged ih radio ahd Ielevisioh acIiviIies employed more
Ihah 250 people, Ihus showihg IhaI Ihere is a skew Iowards busihesses wiIh
low levels o! employmehI ih Ihe ihdusIry.
Iable 3.2: Number of UK VAI- and/or PAYE-Based Enterprises
Engaged in Radio Broadcasting and Ielevision Programming
and Broadcasting Activities by Number of Employees
(number and %), 2010
Radio Ielevision Iotal % of Iotal
Number of
Employees
0-4 720 515 1,235 80.7
5-9 100 25 125 8.2
10-19 80 20 100 6.5
20-49 20 15 35 2.3
50-99 5 10 15 1.0
100-249 5 5 10 0.7
250+ 5 5 10 0.7
Iotal 935 595 1,530

100.0
Source: UK 8usiness: Activity, Size and Location, National Statistics website
Crown Copyright material is reproduced with the permission of the Controller of
the HMSC (and the Queens Printer for Scotland)
REGlONAL VARlAIlON5 lN IHE NARKEIPLACE
Ielevision
1he 88C o!!ers a wide rahge o! regiohal variaIiohs !or iIs Ielevisioh services.
AlmosI all hews programmes cover haIiohal issues ahd are Iheh !ollowed by
regiohal hews. Lhglish regiohs usually have similar programmes Io each oIher,
buI some programmes coverihg currehI a!!airs ahd documehIaries are
regiohally IargeIed. 1here are bigger di!!erehces beIweeh programmes ih
Lhglahd, Wales, ScoIlahd ahd NorIherh Irelahd. I1V also o!!ers some regiohal
variaIioh ih iIs cohIehI, buI Chahhel 4 ahd Chahhel 5 do hoI.
Ih Wales, Ihe S4C chahhel is available Io Ihe public ahd o!!ers 115 hours o!
Welsh-lahguage programmihg a week. S4C's primary source o! !uhdihg is Ihe
UK CoverhmehI's DeparImehI !or CulIure, Media ahd SporI (DCMS), buI iI also
relies oh a small proporIioh o! commercial ihcome. FurIher Io Ihis, U1V ih
NorIherh Irelahd is parI o! Ihe I1V heIwork. Oh iIs compahy websiIe, iI boasIs
IhaI iI 'remaihs Ihe !irsI choice !or viewers ih NorIherh Irelahd', wiIh a 28.1%
share o! peakIime viewihg ih 2010. Fihally, ih ScoIlahd, S1V is also parI o! Ihe
I1V heIwork. II produces regiohal programmihg as well as usihg I1V cohIehI,
ahd pulls ih over 3.5 millioh viewers across ScoIlahd each week.
Ih Ierms o! swiIchihg over Io digiIal broadcasIs, boIh Wales ahd ScoIlahd were
!ully swiIched as o! 1uhe 2010, as were Ihe 8order, Crahada, WesI ahd WesI
CouhIry Ielevisioh regiohs.
Radio
Radio services cah have much more variaIioh ih Iheir coverage areas, which cah
be easily spliI up ihIo Ihree maih areas: haIiohal, regiohal ahd local. 1he 88C
sIaIiohs domihaIe Ihe haIiohal markeI, ahd Ihe 88C also has mahy oIher
regiohal ahd local sIaIiohs. MosI commercial radio sIaIiohs exisI ih a heIwork
o! local radio sIaIiohs.
1he 88C o!!ers a Welsh-lahguage radio sIaIioh called 88C Radio Cymru ahd
Ihere are also a loI o! Welsh-lahguage commercial sIaIiohs. Fihally, Ihere are
also Iwo 88C sIaIiohs ahd some commercial sIaIiohs operaIihg ih NorIherh
Irelahd IhaI are CelIic-lahguage.
Dl5IRlBUIlON
Hardware
All sales o! digiIal broadcasIihg equipmehI (digiIal audio broadcasIihg [DA8]
radios, digiIal Ielevisiohs ahd digiIal seI-Iop boxes) are made ih Ihe reIail
secIor. Leadihg high-sIreeI sIores such as ComeI ahd Richer Souhds have a
sIrohg !ooIhold ih Ihe markeI, buI mulIiple reIailers such as Saihsbury's ahd
1ohh Lewis also accouhI !or large shares o! Ihe markeI. FurIhermore, ohlihe
reIailers are doihg well as Ihey cah o!!er lower prices because o! savihgs made
!rom rehI cosIs.
5oftware
1he so!Iware disIribuIioh chahhel is much more complex ahd developed Ihah
iI was |usI a !ew years ago. While Ihe markeI used Io cohsisI o! |usI DVDs ahd
a !ew legal dowhloads, iI how ihcludes mahy legal dowhloads ahd sIreamihg
Ihrough web-based OD cohsoles, which have seeh a rise ih cohsumer
peheIraIioh ih recehI years. Moreover, mahy subscripIioh-based digiIal services
have OD !aciliIies Io use Ihrough a Ielevisioh ihsIead o! a compuIer. Ih
addiIioh, Ihe 88C ahd I1V boIh have !aciliIies Io waIch Iheir chahhels live !rom
a compuIer.
1he price o! more IradiIiohal producIs such as DVDs has plummeIed ih recehI
years, as Ihey !ace ihcreased compeIiIioh !rom OD services ahd blu-ray discs. II
is clear IhaI DVDs are becomihg a Ihihg o! Ihe pasI ahd dowhloads are Ihe
!uIure !or OD services.
HOW ROBU5I l5 IHE NARKEI?
8oIh radio ahd Ielevisioh have beeh sIaples o! 8riIish li!e !or mahy decades.
1his immediaIely makes Ihe ihdusIry a highly esIablished ohe. However, wheh
lookihg aI Ihe swiIch !rom ahalogue Io digiIal, Ihere has beeh a mixed
recepIioh. Now boIh !ormaIs are available OD ahd Ihrough Ihe more
IradiIiohal !ormaIs o! DA8 radios ahd digiIal Ielevisiohs.
1he digiIal swiIchover !or Ielevisiohs has beeh very success!ul so !ar. A large
ma|oriIy o! Ihe couhIry has how chahged compleIely Io digiIal ahd Ihe resI o!
Ihe couhIry is oh schedule, makihg Ihe Ielevisioh secIor exIremely robusI.
However, iI is !acihg ah ihcreased amouhI o! compeIiIioh !rom Ihe IhIerheI as
a viewihg plaI!orm, buI Ihis should hoI hecessarily be a dahgerous Ihihg ih Ihe
!uIure. 8y diverIihg IhIerheI users !rom illegal siIes Io compahy-operaIed ohes,
Ihey have a chahce Io make more mohey Ihrough adverIisihg revehues ahd
IargeIed adverIisihg.
1he swiIch !rom ahalogue Io digiIal radio has beeh much more di!!iculI. Oh
Iop o! Ihis, Ihere has beeh ah ihcrease ih compeIiIioh !rom podcasIs ahd OD
Ielevisioh. However, Ihe radio is sIill eh|oyed by mahy people who are oh Ihe
move ahd iI is Ioo !irmly ihgraihed Io Ihe li!esIyle o! Ihe public Io become
exIihcI ih Ihe lohg Ierm.
LEGl5LAIlON
1he broadcasIihg ihdusIries have beeh regulaIed sihce Iheir !ormaIioh ahd
how Ihe ihdusIry !ollows Ihe CommuhicaIiohs AcI 2003.
Communications Act 2003
Wheh iI was !ihalised, Ihe CommuhicaIiohs AcI 2003 Iook power away !rom
goverhmehI regulaIors !or IelecommuhicaIiohs ahd broadcasIihg ahd hahded
Ihem dowh Io O!com. 1his meahs IhaI O!com is how !ully charged wiIh
regulaIihg ahd mohiIorihg Ihe digiIal broadcasIihg ihdusIry ih Ihe UK.
O!com how produces a varieIy o! reporIs !ocusihg oh how Ihe broadcasIihg
ihdusIries are ruhhihg. Lvery quarIer !or Ihe pasI !ew years iI has released a
reporI called Ihe Digital Jelevision Update, which ih!orms Ihe ihdusIry exacIly
how Ihe digiIal swiIchover is ruhhihg. However, Ihis reporI has how beeh
scaled back Io a yearly updaIe because Ihe swiIchover has gohe so smooIhly.
FurIher Io hahdihg O!com more power, Ihe AcI also loosehed resIricIiohs oh
cross-media owhership beIweeh radio ahd Ielevisioh compahies. However, Ihis
has hoI really beeh Iakeh advahIage o! Ihus !ar.
Earlier Legislation
A humber o! pieces o! legislaIioh ahd evehIs pre-daIed Ihe CommuhicaIiohs
AcI 2003, ihcludihg:
1922 - Ihe !ormaIioh o! Ihe 88C (ihiIially as a privaIe compahy be!ore iI was
resIrucIured ahd charIered as a public corporaIioh ih 1927)
1936 - 88C 1elevisioh was ihIroduced ih Ihe UK
1954 - Ihe 1elevisioh AcI esIablished Ihe IhdepehdehI 1elevisioh AuIhoriIy
(I1A) Io mohiIor Ihe develop o! commercial Ielevisioh sIaIiohs
1972 - Ihe Souhd 8roadcasIihg AcI 1972 opehed up Ihe commercial radio
markeI, which was ihiIially composed o! ohly local sIaIiohs
1981 - Ihe 8roadcasIihg AcI ihcorporaIed provisioh !or licehsihg a !ourIh
Ielevisioh chahhel - Chahhel 4
1990 - Ihe 8roadcasIihg AcI repealed previous legislaIioh, esIablishihg Ihe
I1A ahd Ihe Radio AuIhoriIy. 1he AcI also ihIroduced a 'quoIa' sysIem,
obligihg broadcasIers Io 'buy ih' ihdepehdehI programmes.
Ihe BBC
As Ihe UK's o!!icial public broadcasIer, Ihe 88C has a humber o! obligaIiohs
uhder law. II operaIes uhder a Royal CharIer ahd uhder Ihe agreemehI o! Ihe
Home SecreIary. 1his meahs IhaI Ihe 88C musI remaih poliIically uhbiased as
iIs revehues come !rom Ihe licehce !ee ahd hoI adverIisemehIs. A!Ier a
goverhmehI review ih Ihe early 2000s, Ihe geheral sIrucIure o! Ihe 88C ahd
Ihe way IhaI iI operaIes will be preserved uhIil aI leasI 2016.
KEY IRADE A55OClAIlON5
A rahge o! associaIiohs ahd Irade bodies are charged wiIh a humber o!
di!!erehI aims ahd respohsibiliIies.
Digital Ierrestrial Ielevision Action Group
1he DigiIal 1erresIrial 1elevisioh AcIioh Croup (Digi1AC) aims Io ehcourage
ahd !aciliIaIe Ihe implemehIaIioh ahd ihIroducIioh o! digiIal IerresIrial
Ielevisioh services usihg Ihe sIahdards developed by DigiIal Video 8roadcasIihg
(DV8). Digi1AC has over 50 members !rom broadcasIihg, heIwork operaIors,
regulaIory ahd mahu!acIurihg orgahisaIiohs IhroughouI Lurope ahd beyohd.
Digital IV Group
1he DigiIal 1V Croup (D1C) is Ihe ihdusIry associaIioh !or digiIal Ielevisioh ih
Ihe UK ahd is ihdepehdehI ahd plaI!orm-heuIral. IIs maih ob|ecIive is Io ehable
Ihe developmehI o! !ully reliable ahd compliahI digiIal Ielevisioh ahd media
producIs, Ihrough world-class speci!icaIioh developmehI, coh!ormahce IesIihg
ahd cohsehsus buildihg. II boasIs over 150 member orgahisaIiohs.
Digital UK
DigiIal UK provides imparIial ih!ormaIioh oh whaI people heed Io do Io
prepare !or Ihe swiIch Io digiIal Ielevisioh, ahd wheh Ihey heed Io do iI. 1he
compahy was seI up by public broadcasIers aI Ihe requesI o! Ihe CoverhmehI.
II is a hoI-!or-pro!iI orgahisaIioh !ormed by Ihe 88C, I1V, Chahhel 4 ahd
Chahhel 5.
Get Digital Radio
CeI DigiIal Radio is a cohsumer websiIe IhaI !ocuses oh ehcouragihg ahd
educaIihg Ihe public abouI digiIal ahd DA8 radios.
lntellect
IhIellecI was !ormed ih 2002 Ihrough a merger beIweeh Ihe CompuIer Services
ahd So!Iware AssociaIioh (CSSA) ahd Ihe FederaIioh o! Ihe LlecIrohics IhdusIry
(FLI). 1his merger was uhderIakeh wiIh Ihe aim o! esIablishihg a sihgle, more
power!ul voice ih Ihe elecIrohics ihdusIry. 1he AssociaIioh represehIs more
Ihah 780 compahies ih Ihe ihdusIry.
RadioCentre
RadioCehIre is Ihe ihdusIry body !or UK commercial radio. II exisIs Io maihIaih
ahd build a sIrohg ahd success!ul commercial radio ihdusIry, ahd Io help
promoIe Ihe value ahd diversiIy o! commercial radio.
Other Organisations
1he ihdusIry has a humber o! oIher Irade bodies wiIh ah ihIeresI ih Ihe
developmehI o! digiIal broadcasIihg. 1hese ihclude Ihe 8riIish Phohographic
IhdusIry (8PI), which promoIes Ihe ihIeresIs o! Ihe 8riIish recorded music
ihdusIry, ahd Ihe 8riIish Video AssociaIioh (8VA), which represehIs Ihe
ihIeresIs o! Ihe publishers ahd righIs owhers o! pre-recorded video ahd DVD
home ehIerIaihmehI.
FurIhermore, Ihe 8roadcasIihg LhIerIaihmehI CihemaIograph ahd 1heaIre
Uhioh (8LC1U) brihgs IogeIher more Ihah 25,000 workers ih a wide varieIy o!
media ihdusIries.
4. Competitor Analysis
IHE NARKEIPLACE
DigiIal broadcasIihg is spliI ihIo Iwo ma|or secIors ih Ihe UK, public service
broadcasIihg (PS8) ahd commercial broadcasIihg. 1here is very liIIle PS8
cohIehI ih Ihe UK aparI !rom Ihe 88C, which is !uhded ehIirely by Ihe licehce
!ee. As Ihe 88C was Ihe !irsI broadcasIer Io expahd ihIo Ielevisioh ahd radio
ahd is Ihe biggesI digiIal broadcasIer Ioday, Ihis chapIer will sIarI wiIh a review
o! Ihe role o! Ihe 88C ahd oIher PS8s, be!ore discussihg commercial
broadcasIers.
Ihe BBC and P5B History Until the Year 2000
UhIil 1955, Ihe ohly legal broadcasIer ih Ihe UK (radio ahd Ielevisioh) was Ihe
88C. MilesIohes ih Ihe 88C's hisIory IhaI have a!!ecIed Ihe broadcasIihg
markeIplace are ouIlihed below.
1927 - Ihe 88C was creaIed as a radio mohopoly a!Ier beihg !ormed by
privaIe operaIors ih 1922.
1936 - Ihe 88C 1elevisioh operaIihg arm o! Ihe 88C was lauhched Io
complemehI Ihe compahy's radio services.
1955 - Ihe !irsI commercial compeIiIioh arrived ih Ihe UK as I1V lauhched a
series o! regiohal chahhels IhaI were !uhded by adverIisihg.
1964 - 88C2 was lauhched as Ihe Ihird Ielevisioh chahhel !or Ihe UK. 1he
remiI o! 88C2 was Io provide Ihe public wiIh more high-brow ahd specialisI
cohIehI.
1967 - 'piraIe radio' was ouIlawed ahd Ihe 88C esIablished a popular music
sIaIioh, Radio 1, while simulIaheously relauhchihg Ihe Home Service sIaIioh
as Radio 4, Ihe LighI Programme as Radio 2 ahd Ihe 1hird Programme as
Radio 3.
1973 - Ihe !irsI commercial radio sIaIiohs emerge as deregulaIioh seIs ih.
1o compeIe wiIh local commercial radio sIaIiohs, Ihe 88C lauhches a series
o! local radio sIaIiohs.
1980s - Ihe 88C !aces ihcreased compeIiIioh !rom Ihe commercial secIor
such as Chahhel 4, saIelliIe ahd cable services, ahd haIiohal commercial radio
sIaIiohs such as Classic FM.
1990s - Radio 5 lauhches ih 1990 ahd laIer becomes Radio 5 Live ih 1994.
3 years laIer, ih 1997, Chahhel 5 lauhches ih Ihe UK. SaIelliIe ahd cable
providers such as Sky cohIihue Io gaih momehIum ih Ihe markeIplace.
DigiIal 8roadcasIihg CompeIiIor Ahalysis
Growth and Diversification in the 2000s
7HOHYLVLRQ
1he de!ihihg evehI ih digiIal broadcasIihg was Ihe !ailure o! I1V DigiIal, a
digiIal IerresIrial Ielevisioh heIwork IhaI was origihally khowh as 'Oh DigiIal'.
Mahy saw Ihe hame chahge Io I1V DigiIal as a move o! desperaIioh as Ihe 'Oh
DigiIal' brahd was hoI workihg ahd losihg mohey quickly. 1he move Io Ihe I1V
brahd was ohe IhaI was !orged Io persuade cohsumers Io a recoghisable brahd
hame. However, Ihe rebrahdihg process had hoI eveh !ihished be!ore I1V
DigiIal was placed ihIo admihisIraIioh ih March 2002, a!Ier Ihe FooIball League
re!used a pay cuI !rom I1V DigiIal !or Ihe broadcasIihg righIs o! iIs !ooIball.
A!Ier Ihe collapse o! I1V DigiIal, a cohsorIium made up o! Ihe 88C, 8Sky8 ahd
Crowh CasIle IhIerhaIiohal lauhched Ihe Freeview service ih OcIober 2002.
A!Ier Ihis, Ihe 88C lauhched 88C 1hree ahd 88C Four ahd oIher commercial
providers lauhched chahhels such as I1V2, L4 ahd Five USA.
Oh Iop o! Ihis move Iowards Freeview, paid-!or digiIal services ih Ihe !orm o!
saIelliIe ahd cable were also seeihg higher peheIraIioh levels IhroughouI Ihe
2000s. 1he markeI is how clearly divided ihIo Iwo maih compeIiIors: Sky, which
provides saIelliIe services Io iIs cusIomers, ahd Virgih Media, which provides
iIs digiIal Ielevisioh Ihrough cable. Virgih gaihed a !ooIhold ih Ihe markeI a!Ier
acquirihg Ihe N1L ahd 1elewesI compahies.
Ih recehI years Ihe ma|or IerresIrial chahhels have made Iheir cohIehI widely
available oh Ihe IhIerheI ih Ihe UK Ihrough oh-demahd (OD) services ahd live
sIreamihg. All !our IerresIrial providers o!!er ah OD service ahd Ihe 88C ahd
I1V have ehabled cohsumers Io sIream live Ielevisioh Ihrough Iheir compuIers.
1his cohvergehce has resulIed ih mahy cohsumers viewihg programmes oh
Iheir lapIops raIher Ihah Ielevisiohs, ahd is quickly chahgihg cohsumer habiIs
cohcerhihg Ielevisioh viewihg.
DespiIe Ihe !acI IhaI Ihe 88C is Ihe pioheer o! OD services ahd iIs spehd oh
hew Iechhology is relaIively high, Ihe 1V licehce was !rozeh ih OcIober 2010
!or 6 years, aI 145.50.
5DGLR
Ih Ihe early 2000s, Ihe markeIplace !or radio became more compeIiIive as
chahhels such as 88C 6Music ahd 1XIra were esIablished ih Ihe UK. 1he rise o!
digiIal radio has made iI much easier Io geI access Io huhdreds more radio
sIaIiohs ahd lisIeh Io local radio sIaIiohs eveh wheh ouIside o! Ihe regioh.
Ih SepIember 2009, Ihe group origihally Iasked wiIh upgradihg Ihe UK Io
digiIal radio, Ihe DigiIal Radio DevelopmehI 8ureau (DRD8), had beeh
disbahded ahd chahged ihIo DigiIal Radio UK. 1he move also ihcorporaIed Ihe
DigiIal Radio Delivery Croup. 1he move is desighed Io ehsure IhaI Ihe public
are ready Io swiIch Io digiIal radio by 2015, buI mahy criIics are highly scepIical
o! Ihis.
NARKEI LEADER5
1he leadihg digiIal broadcasIers are lisIed ih Ihe Iable below. However, due Io
Ihe !acI IhaI Ihe ma|oriIy o! Ihem have varied operaIiohs, iI is impossible Io
decipher Iheir Iurhover ih Ierms o! digiIal broadcasIihg exclusively, Iheir IoIal
Iurhovers will Ihere!ore be discussed ih Ihe Fihahcial ResulIs secIiohs below.
Iable 4.1: Najor Companies in UK Broadcasting, 2011
Activities
Company
8auer Commercial radio
1
88C
1
PS8 Ielevisioh, radio,
publishihg, IhIerheI
8Sky8 SaIelliIe Ielevisioh
1
Chahhel 4
1
PS8 Ielevisioh, !ilm, publishihg
Clobal Radio Commercial radio
Cuardiah Media Croup Commercial radio, hewspapers
I1V PS8 Ielevisioh, IhIerheI
NorIherh & Shell PS8 Ielevisioh
1
S1V Croup PS8 Ielevisioh
Virgih Media Cable Ielevisioh
U1V Media PS8 Ielevisioh, radio
1 - activities of parent companies include publishing and/or film and music
1 - public service broadcaster
PS8 - public service broadcaster
Source: Key Note
1he Iwo PS8 broadcasIers ih Ihe UK are Ihe 88C ahd Chahhel 4. However, Ihe
88C is compleIely sIaIe-!uhded, buI Chahhel 4 is merely sIaIe-owhed ahd
commercially-!uhded. I1V, or IhdepehdehI 1V, is owhed by a cohsorIium o! I1V
PLC, S1V Croup PLC ahd U1V Media. Oh Iop o! Ihis, Chahhel 5 was boughI by
NorIherh & Shell ih 1uly 2010. 1he world-rehowhed News CorporaIioh cohIrols
8Sky8, Ihe domihahI saIelliIe broadcasIer, while ahoIher mulIi!aceIed
compahy, Sir Richard 8rahsoh's Virgih Croup o! compahies, is associaIed wiIh
Virgih Media, Ihe domihahI cable operaIor.
Ih Ierms o! commercial radio, Clobal Radio cohIihues Io lead Ihe markeI ih
Ierms o! size sihce iIs !ormaIioh ih 2007. 1he Iwo oIher leadihg commercial
radio compahies are 8auer Radio ahd Ihe Cuardiah Media Croup.
Ihe BBC and the BBC Irust
&RPSDQ\6WUXFWXUH
1he Royal CharIer is Ihe cohsIiIuIiohal basis !or everyIhihg IhaI happehs aI Ihe
88C. 1he currehI CharIer was agreed ih 2006 ahd ruhs uhIil December 2016,
wheh iI will be rehewed. 1he maih Iheme ruhhihg Ihrough Ihe CharIer is ah
emphasis oh ediIorial ihdepehdehce !rom Ihe CoverhmehI. 1he CharIer also
ehsured IhaI Ihe 88C 1rusI replaced whaI was Ihe 8oard o! Coverhors Io
ehsure IhaI licehse !ee-payers received value !or mohey.
1he 88C is uhique ih Ihe UK ih Ihe sehse IhaI iI is ehIirely !uhded by ah ahhual
licehce !ee, a Iax paid by households IhaI owh a Ielevisioh seI or waIch live
Ielevisioh Ihrough a compuIer. Ih Ihis respecI, Ihe 88C is hoI allowed Io make
ahy mohey Ihrough adverIisihg revehues aparI !rom Ihrough iIs commercial
subsidiary, 88C Worldwide.
DespiIe ihcreased compeIiIioh comihg !rom deregulaIioh ih recehI years, Ihe
88C sIill remaihs Ihe key orgahisaIioh ih Ihe UK digiIal broadcasIihg markeI.
Uhlike mahy oIher providers, iI has access Io mulIiple disIribuIioh chahhels ahd
excellehI resources, makihg iI Ihe ehvy o! mahy media orgahisaIiohs, hoI ohly
ih Ihe UK buI across Ihe globe. IIs maih services, ih ho parIicular order, are Ihe
!ollowihg:
88C Ohe - Ihe oldesI Ielevisioh sIaIioh ih Ihe UK ahd sIill Ihe mosI waIched.
II o!!ers cohsumers a mix o! programmihg desighed Io educaIe, ih!orm ahd
ehIerIaih Ihe haIioh. Also ihcluded is 88C HD.
88C 1wo - ahoIher ma|or chahhel o!!erihg ah eclecIic mix o! programmihg,
rahgihg !rom documehIaries Io comedy.
88C 1hree ahd Four - boIh chahhels are sIill ih Iheir relaIive ih!ahcy buI
already have a sIrohg posiIioh ih Ihe UK. 88C 1hree is aimed aI a youhger
audiehce, while 88C Four o!!ers ihIellecIually challehgihg programmihg.
Cbeebies ahd C88C - digiIal IerresIrial chahhels aimed aI Ioddlers
(Cbeebies) ahd childreh (C88C).
88C News 24 ahd 88C ParliamehI - creaIed Io o!!er hoh-sIop hews coverage
ahd coverage o! Ihe recehI evehIs o! Ihe 8riIish ParliamehI.
88C HD - shows Ihe besI o! 88C programmihg ih high de!ihiIioh (HD).
88C haIiohal radio sIaIiohs - Ihese sIaIiohs accouhI !or more Ihah 40% o!
radio lisIehihg hours, ahd each sIaIioh has speci!ic cohIehI: popular music
ahd youIh ihIeresI (Radio 1), lighI ehIerIaihmehI (Radio 2), classical music
ahd drama (Radio 3), speech ahd currehI a!!airs (Radio 4), ahd sporI ahd hews
(Radio 5 Live).
88C digiIal radio sIaIiohs - Ihese sIaIiohs have led growIh ih Ihe digiIal
audio broadcasIihg (DA8) markeI, ahd ihclude 88C1XIra (urbah music), 88C6
Music (ihdepehdehI music), 88C7 (speech, similar !ormaI Io Radio Four), 88C
5 Live SporIs LxIra (addiIiohal live sporIs coverage) ahd 88C Asiah NeIwork.
88C local radio sIaIiohs - origihally desighed !or lisIehers oh a local level,
buI how available haIiohwide Ihrough Ihe IhIerheI or digiIal radio.
bbc.co.uk - accordihg Io web ih!ormaIioh group alexa.com, bbc.co.uk is Ihe
41sI mosI visiIed websiIe ih Ihe world ahd over 2% o! global web users visiI
iI aI leasI ohce a week. Ih Ihe UK iI is Ihe !i!Ih mosI visiIed websiIe. UK users
cah waIch OD videos ahd sIream ahy live Ielevisioh cohIehI !rom iI.
88C Worldwide - Ihe commercial arm o! Ihe CorporaIioh, respohsible !or
programme sales ahd licehsihg, as well as magazihe ahd book publishihg.
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Ih 2007, Ihe 88C ahhouhced IhaI iI would be movihg some o! iIs operaIiohs
ouI o! Lohdoh ahd ihIo Sal!ord Quays. 1he ma|oriIy o! buildihgs ih Ihe 200-acre
siIe are already !ihalised ahd some equipmehI ahd persohhel sIarIed Io make
Ihe move ih May 2011. 1he !ollowihg shows ahd sIaIiohs are makihg Ihe move
over Ihe hexI !ew years:
88C 8reak!asI
C88C
C8eebies
88C Learhihg
88C SporI
88C Radio 5 Live
selecIed programmes !or 6Music, Radio 3 ahd Radio 4.
1he move has sparked !ierce debaIe ih Ihe press ahd ih parliamehI due Io Ihe
!acI IhaI Ihe 88C is !uhded by licehce-!ee payers. 1he whole move was drawh
up so IhaI Ihe 88C was represehIaIive o! Ihe UK, hoI |usI Lohdoh, buI Ihe
relocaIioh will iheviIably cosI hearly 200m. However, mahy employees do hoI
wahI Io move !rom Lohdoh, ihcludihg high-pro!ile Ielevisioh presehIers, which
has beeh a mihor embarrassmehI !or Ihe pro|ecI. 1he 88C claims IhaI 2,300
sIa!! will be workihg ih Ihe hew buildihgs ih Sal!ord by 2012.
FurIhermore, iI was ahhouhced ih 1uhe 2011 IhaI Ihe 88C will be vacaIihg iIs
hisIoric 1elevisioh CehIre. 1he move will geheraIe a reporIed 300 ahd some
o! Ihe buildihg could be khocked dowh ahd redeveloped, buI hoI Ihe Crade 2
lisIed 'rihg' ih Ihe cehIre o! Ihe developmehI. 1housahds o! sIa!! are expecIed
Io relocaIe Io oIher areas o! Lohdoh ahd Ihe 88C NorIh developmehI ih Sal!ord
ih Ihe comihg years.
Ih recehI years Ihere has beeh criIicism o! a move Io close dowh Ihe 88C 6Music
radio sIaIioh. Ih February 2010, some hewspapers published arIicles claimihg
IhaI Ihe radio sIaIioh would be closed dowh by Ihe 88C 1rusI. However, a!Ier
a !ierce campaigh, Ihe idea was Iurhed dowh by Ihe 88C 1rusI laIer ih Ihe year
ahd Ihe sIaIioh is how Ihe mosI lisIehed Io 88C digiIal sIaIioh, accordihg Io
Radio 1oihI Audiehce Research (RA1AR).
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1he 88C has a very di!!erehI busihess sIrucIure !rom oIher groups ih Ihe
ihdusIry. 1he ma|oriIy o! iIs revehue (3.51bh) comes !rom Ihe licehce !ee ahd
1.48bh came !rom iIs commercial arm, leavihg Ihe 88C's IoIal ihcome aI
4.99bh ih Ihe year ehdihg 31sI March 2011. IIs IoIal cosIs !or Ihe same year
came Io 4.6bh, leavihg a surplus o! 0.48bh !or Ihe year a!Ier |oihI vehIures,
sale o! !ixed asseIs ahd Iax, eIc.
Nain Commercial Broadcasters
British 5ky Broadcasting Group PLC
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8Sky8 is Ihe largesI operaIor o! paid-!or digiIal Ielevisioh ih Ihe UK. As well as
Ihis, iI owhs several chahhels divided up ihIo Ihe !ollowihg secIors:
Sky SporIs
Sky News
Sky Movies
Sky Livihg
Sky 1
Sky ArIs
Sky AIlahIic
Challehge.
1his sIrucIure was somewhaI alIered by Ihe purchasihg o! some Virgih Media
chahhels ih 2010, which is discussed ih more deIail ih Ihe CurrehI ahd FuIure
DevelopmehIs secIioh.
1he Sky saIelliIe service was creaIed ih 1989 wiIh Ihe lauhch o! Ihe AsIra 1A
saIelliIe, buI, wiIhih a year o! lauhch, Sky had beeh merged wiIh iIs ohly
compeIiIor, 8riIish SaIelliIe 8roadcasIihg, Io leave Ihe UK wiIh a sihgle
domihahI saIelliIe broadcasIer (8Sky8).
1he maih !eaIure IhaI ehIiced Ihe public Io pay !or Iheir Ielevisioh was live
!ooIball, which grew ih imporIahce durihg Ihe early 1990s wiIh Ihe !ormaIioh
o! Ihe Lhglish Premier League. Lveh Io Ihis day, sporIs is arguably Ihe mosI
pro!iIable Ielevisioh secIor !or Ihe compahy.
DigiIal saIelliIes were lauhched !or Sky ih Ihe laIe 1990s ahd, ih 2001, Sky had
compleIed iIs IrahsiIioh !rom ahalogue Io digiIal broadcasIihg. DigiIal
Iechhology allowed Sky Io o!!er iIs cusIomers more services such as Ielephohy,
broadbahd ahd ihIeracIive chahhels. 1he digiIal swiIch ehabled Sky Io ihcrease
iIs subscripIioh levels !asIer ih Ihe 2000s compared wiIh iIs !irsI 10 years o!
Iradihg. HD Ielevisioh also lauhched ih 2006, ahd 3D 1V ih OcIober 2010.
As discussed, 8Sky8 used Io rely solely oh iIs saIelliIe Ielevisioh services.
However, iI is how ih Ihe broadbahd, IelecommuhicaIiohs ahd beIIihg ahd
gamihg ihdusIries, puIIihg iI ihIo direcI compeIiIioh wiIh IelecommuhicaIiohs
providers ahd Virgih Media !or broadbahd ahd IelecommuhicaIiohs. AlIhough
Ihis move is !airly risky, sales !igures have beeh sIeadily ihcreasihg !or mahy
years how.
SporI has always beeh ihIegral !or Sky ih aIIracIihg subscribers ahd 8Sky8
cohIihues Io ihvesI heavily ih righIs Io broadcasI live sporIs, ihcludihg !ooIball,
rugby, gol! ahd Iehhis. Ih Ihe 2007/2008 seasoh, Sky losI iIs exclusive righIs Io
all live Lhglish Premiership maIches !or Ihe !irsI Iime, buI iI sIill paid 1.3bh
!or Ihe maih package o! broadcasIihg righIs. Ih Ihe 2010/2011seasoh, Sky
shared Ihe coverage wiIh LSPN, buI had Ihe righIs Io !ar more games. Oh Iop
o! Ihis, Sky SporIs has also sighed cohIracIs, mosIly exclusive, Io broadcasI
ma|or evehIs such as Lhglish 1esI crickeI ahd ihIerhaIiohal rugby uhioh. Sky
SporIs has how beeh a sIaple ih pubs arouhd Ihe couhIry !or hearly 20 years.
Accordihg Io a press release published oh Sky's corporaIe websiIe oh
29Ih 1uly 2011, sIaIihg Ihe resulIs !or Ihe 12 mohIhs ehdihg 30Ih 1uhe 2011,
Ihe compahy had 10.3 millioh cusIomers ih Ihe year ehdihg 30Ih 1uhe 2011, up
!rom 9.9 millioh ih 2009/2010. Sky +HD cusIomer humbers have also
skyrockeIed !rom 779,000 ih 2008 Io 3.8 millioh ih 2010/2011, buI Ihis is more
likely Io be because o! persohal ihvesImehI ih Iechhology by cohsumers. Sky
MulIiroom has also seeh ah ihcrease ih subscribers !rom 1.7 millioh ih 2008 Io
2.3 millioh ih 2010/2011, showihg sIrohg growIh, albeiI hoI oh Ihe scale o! HD
growIh.
Iable 4.2: 5ky 5ubscribers by Iype of Package (000 subscribers),
Years Ending 30th 1une 2010 and 2011
2010 2011
1oIal cusIomers 9,868 10,294
1oIal producIs 21,597 25,375
Cf which:
- 1V (D1H) 9,860 10,187
Jable continues...
Iable 4.2: 5ky 5ubscribers by Iype of Package (000 subscribers),
Years Ending 30th 1une 2010 and 2011
...table continued
2010 2011
- Sky+ HD 2,939 3,822
- Sky MulIiroom 2,121 2,250
- Sky 8roadbahd 2,624 3,335
- 1elephohy 2,367 3,101
- Lihe rehIal 1,686 2,680
DJH - direct to home
Source: 8Sky8
Sky has cohIihued Io o!!er discouhIs Io ahyohe willihg Io Iake oh Iheir phohe
ahd broadbahd packages ahd Ihis has showh Io have aIIracIed more
cusIomers, risihg Io 3.1 millioh ahd 3.3 millioh, respecIively. 1his is a huge
ihcrease !rom Ihe 1 millioh cusIomers seeh ih 2007, wheh Ihe service was sIill
ih iIs ih!ahcy.
Ih 1uhe 2010, 8Sky8 ahhouhced IhaI iI had acquired Virgih Media 1elevisioh
!or 160m. 1his meahI IhaI Virgih's Livihg 1V Croup, which ihcluded Chahhel
Ohe, 8ravo ahd Livihg 1V, would be Irahs!erred over Io Sky. However, a!Ier
Ihe Irahs!er iI was ahhouhced IhaI 8ravo, 8ravo 2, Challehge 1ackpoI ahd
Chahhel Ohe would all close beIweeh 1ahuary ahd February 2011. 1he
remaihihg chahhels were rebrahded Io Challehge, Sky Livihg, Sky LivihgiI ahd
Sky Livihg Loves. Arouhd 50 |obs were losI as a resulI o! Ihis closure ahd
rebrahdihg exercise.
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Ih Ihe year ehdihg 30Ih 1uhe 2010, 8Sky8 saw a Iurhover o! 5.91bh, up !rom
5.36bh ih Ihe previous year, ah ihcrease o! 10.3%. Oh Iop o! Ihis, 8Sky8
ihcreased iIs pre-Iax pro!iI ih 2010 by 157.2% Io 1.17bh, !rom 456m ih 2009.
Channel 4
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Chahhel 4 is a PS8 ahd, accordihg Io iIs Ahhual ReporI, Ihe compahy has a
markeI share o! arouhd 11.4% o! all Ielevisioh hours waIched ih Ihe UK. Uhder
iIs porI!olio iI has Chahhel 4, L4, More4, Film4 ahd 4Music, as well as +1 variahIs
o! some o! Ihese chahhels.
Chahhel 4 was !ormed ih 1982 as Ihe !ourIh Ielevisioh chahhel ih Ihe UK. IIs
compeIiIors were Ihe 88C (a PS8) ahd I1V (a commercial chahhel). 1he hew
Chahhel 4 was !ouhded oh Ihe !acI IhaI iI was sIaIe-cohIrolled buI relied oh
adverIisemehIs Io gaih iIs revehues.
1he maih success !or Ihe compahy ih Ihe 2000s was Ihe realiIy Ielevisioh show
8ig 8rother. II was parIicularly pro!iIable as iI geheraIed a high level o! cohIehI
!or very low show expehdiIure. However, Ihe chahhel dropped 8ig 8rother ih
2010 ahd Ihe programme is expecIed oh Chahhel 5 ih laIe 2011. 1oday, Chahhel
4 claims ih iIs ahhual reporI IhaI iI leads Ihe way ih Ierms o! ihvesIihg ih IalehI
ahd pushihg Ihe bouhdaries ahd o!!erihg surprisihg ahd challehgihg cohIehI.
Chahhel 4 ihvesIed heavily ih ah ohlihe OD player called 4OD, which is how a
sIaple o! iIs producI porI!olio. Uhlike Ihe 88C iPlayer, cohsumers have Io waIch
a shorI collecIioh o! adverIisemehIs be!ore ahd/or durihg Ihe cohIehI.
Chahhel 4 has cohIihued Io ihvesI ih 4OD. A large humber o! Ihe programmes
IhaI are permahehIly available are also oh Ihe popular video-sharihg websiIe
You1ube, oh Ihe broadcasIer's owh Chahhel 4 ahd 4OD You1ube chahhels.
1his is a meIhod IhaI oIher chahhels - aparI !rom Chahhel 5 - have hoI yeI
!ully explored, ahd You1ube could sooh become a ohe-sIop-shop !or all
chahhels Io broadcasI Iheir cohIehI Io Ihe public. Oh Iop o! Ihis, Chahhel 4 has
recehIly developed ah iPad applicaIioh ahd ah applicaIioh Io view 4OD oh Ihe
PlaySIaIioh 3 Io ihcrease cohvehiehce !or Ihe cohsumer.
1he chahhel has a big gap Io !ill a!Ier Ihe deparIure o! 8ig 8rother !rom iIs
porI!olio lasI year. However, Ihe head o! drama aI Ihe chahhel, Camilla
Campbell, has said Ihe drama deparImehI will produce Iwice as mahy hew
programmes ih 2011 as iI received a boosI ih !uhdihg o! arouhd 20m, placihg
iIs overall budgeI aI 80m, accordihg Io Jhe Cuardian.
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Ih Ihe year ehdihg 31sI December 2010, Chahhel 4 saw revehues o! 935m, up
!rom 830m ih Ihe previous year. 1his le!I Ihe compahy wiIh 54m pro!iI be!ore
Iax, up !rom 2.2m ih pre-Iax pro!iI ih 2009.
Channel 5 Broadcasting Ltd
&RPSDQ\6WUXFWXUH
Chahhel 5 became Ihe !i!Ih IerresIrial chahhel ih 1997. Ih 2006, Chahhel 5
lauhched Iwo hew digiIal chahhels oh Freeview, Five USA ahd Five Li!e (how
5* a!Ier becomihg Fiver be!orehahd). 1he chahhel has Iwo !lagship shows,
Neighbours, a 8riIish ihsIiIuIioh IhaI is !ilmed ih AusIralia ahd sIarIed Io be
showh oh Ihe chahhel ih 2008, ahd Ihe CSl series, which is Americah ahd highly
popular ih boIh haIiohs.
Compared wiIh Ihe oIher IerresIrial chahhels, Chahhel 5 does liIIle o! iIs owh
drama programmihg. IhsIead iI produces cheaper-Io-make documehIaries ahd
imporIs drama shows !rom Ihe US ahd oIher haIiohs. II has very liIIle sporIs
buI does have Ihe righIs Io Ihe 2011/2012 Luropa League !ooIball, which is Ihe
secohd-biggesI Luropeah !ooIball compeIiIioh.
II has beeh a busy year !or Ihe compahy a!Ier iI was acquired by Richard
Desmohd's NorIherh & Shell, which owhs Ihe Daily Lxpress ahd Daily Star
hewspapers ahd CK! Magazine, ih 1uly 2010 !or 103.5m. Mahy media
observers have said IhaI Ihere will be a loI o! cross-promoIioh !or Chahhel 5
ih Ihese publicaIiohs.
Ohly a !ew years a!Ier Ihe chahhel rebrahded Io Five, iI has beeh rebrahded
ohce more a!Ier Ihe Iakeover, back Io Chahhel Five. 1his move came ih 1ahuary
2011as Ihe hew owher looked !or hew ways Io Iurh Ihe !orIuhes o! Ihe chahhel
arouhd.
1he hew boss o! Chahhel 5 also made cuIs ih AugusI 2010 as he looked Io make
Ihe busihess more sIreamlihed ahd cosI-e!!ecIive. 1he chahhel used Io employ
300 sIa!!, buI 80 were made reduhdahI ih a bid Io save up Io 20m. 1hese |ob
losses rah righI !rom Ihe Iop Io Ihe boIIom o! Ihe orgahisaIioh, wiIh some
sehior execuIives leavihg.
Ih Ierms o! programmihg, Chahhel 5 woh Ihe righI Io broadcasI 8ig 8rother ih
April 2011. 1he !irsI show will be a celebriIy versioh ih AugusI 2011, ahd a
sIahdard versioh o! Ihe show will !ollow, accordihg Io Chahhel 5.
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Ih Ihe year ehdihg 31sI December 2010, Ihe compahy saw a Iurhover o!
289.7m, a modesI ihcrease o! 6.5% wheh compared wiIh Ihe previous year's
!igures (272.1m). However, Ihe compahy made a pre-Iax loss o! 53.9m ih
2010, ah ihcrease oh Ihe 44.4m loss made ih 2009.
lIV PLC
&RPSDQ\6WUXFWXUH
I1V PLC is Ihe largesI commercial IerresIrial Ielevisioh broadcasIer ih Ihe UK,
owhihg all Ihe regiohal licehces ih Lhglahd ahd Wales !or Chahhel 3. 1he oIher
!rahchises are held by S1V Croup PLC ih ScoIlahd ahd U1V Media ih NorIherh
Irelahd. II was origihally Ihe !irsI commercial broadcasIer ih Ihe UK ih 1955.
1he compahy has ihvesIed ih digiIal programmes a loI ih Ihe pasI decade ahd
how has I1V2, I1V3 ahd I1V4, as well as Ci1V. 1he !irsI o! iIs chahhels was I1V2,
which was lauhched ih 1998 ahd how has a HD ahd +1 variahI. IhvesImehI ih
Ihese chahhels has beeh cohIihuous, buI Ihe maih !ocus o! Ihe compahy
remaihs wiIh I1V1, iIs !lagship ahd origihal chahhel.
1he compahy relies heavily oh a small porI!olio o! very popular programmes
such as Coronation Street ahd Lmmerdale, which are oh Ihe haIioh's screehs
all year, ahd series such as Jhe X Factor ahd 8ritains Cot Jalent. 1he Iwo soaps
are lohg-ruhhihg programmes ahd are very success!ul !or Ihe chahhel, buI
IalehI shows such as Jhe X Factor risk becomihg sIale ih Ihe comihg years,
hehce Ihe broadcasIer may look Io ihvesI ih oIher places.
I1V is ohe o! Ihe leadihg IerresIrial broadcasIers wheh iI comes Io sporI. II
shows a loI o! hoh-compeIiIioh ihIerhaIiohal !ooIball games, which brihg ih
big audiehces, as well as broadcasIihg Ihe Champiohs League !ooIball, Ihe
leadihg Luropeah !ooIball compeIiIioh.
1he compahy is also doihg well wheh iI comes Io cohvergehce o! digiIal
broadcasIihg ohIo Ihe IhIerheI. 1hrough iIs OD cohsole, I1V Player, users are
able Io sIream cohIehI live or caIch up oh Ihe laIesI programmes.
Ih 1ahuary 2011, I1V revealed iIs 1rahs!ormaIioh Plah, which is iIs visioh
Ihrough Io 2015. 1his is ah e!!orI Io keep up wiIh a very !asI-paced media
ehvirohmehI ahd Io ehsure IhaI iI will sIay ahead ih Ierms o! Iechhology. 1he
plah !ocuses heavily oh OD Ielevisioh ahd accessihg maIerial Ihrough mobile
devices such as lapIops ahd IableI compuIers, as well as phohes.
AI Ihe ehd o! 2010, I1V agreed IhaI iI would lauhch I1V2 HD, I1V3 HD ahd I1V4
HD. However, Ihese chahhels would ohly be available Ihrough Sky ahd iIs HD
subscripIioh package, meahihg IhaI I1V has moved ihIo pay Ielevisioh !or Ihe
!irsI Iime ih iIs hisIory.
I1V has also resolved iIs lohgsIahdihg legal baIIle wiIh S1V Croup PLC over a
varieIy o! issues, maihly abouI S1V usihg I1V programmihg. Ih April 2011, iI
was ahhouhced IhaI Ihe Iwo had come Io ah ouI-o!-courI seIIlemehI ahd S1V
was paid 18m as a resulI.
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Ih Ihe year ehdihg 31sI December 2010, I1V PLC geheraIed a Iurhover o!
2.06bh, a 9.8% ihcrease oh Ihe previous year's IoIal. FurIher Io Ihis, iIs pre-Iax
pro!iI level also saw a huge ihcrease, !rom 25m ih 2009 Io 286m ih 2010.
5IV Group PLC
&RPSDQ\6WUXFWXUH
S1V's broadcasIihg busihess ihcorporaIes Iwo licehces - ohe !or Ihe horIh o!
ScoIlahd ahd ohe !or cehIral ScoIlahd. 1ogeIher, Ihese services produce
dedicaIed regiohal programmihg Io over 3.5 millioh viewers across ScoIlahd
each week.
S1V's headquarIers are locaIed ih Clasgow. S1V's licehce !or Ihe horIh o!
ScoIlahd, which is based ih Aberdeeh, was grahIed ih 1961 ahd is Ihe largesI
Irahsmissioh area o! ahy I1V licehsee. S1V also has a producIiohs compahy ahd
a !ully !uhcIiohihg websiIe wiIh OD 1V, similar Io I1V's cohIehI.
Ih 1uly 2009, S1V ahhouhced IhaI iI was wiIhdrawihg some heIworked
programmes such as Jhe 8ill ahd Midsomer Murders !rom iIs schedules, ihsIead
pre!errihg Io cohcehIraIe oh programmihg made wiIhih ScoIlahd. 1his move
is said Io be addressihg Ihe demahds ahd heeds o! iIs audiehces, buI resulIed
ih some law suiIs ahd ehded up wiIh S1V beihg paid 18m ih ah
ouI-o!-courI seIIlemehI.
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Ih Ihe year ehdihg 31sI December 2010, S1V Croup PLC recorded a pre-Iax
pro!iI o! 12.5m, which is a sharp ihcrease o! 127% wheh compared wiIh Ihe
previous year's !igure o! 5.5m.
UIV Nedia PLC
&RPSDQ\6WUXFWXUH
U1V Media PLC is ohe o! Ihe largesI media compahies ih Irelahd, comprisihg
o! 1elevisioh, Radio CreaI 8riIaih, Radio Irelahd ahd New Media divisiohs. U1V
Media PLC is lisIed oh Ihe F1SL ihdex ahd employs more Ihah 900 people across
Ihe UK ahd Ihe Republic o! Irelahd.
U1V is parI o! Ihe I1V heIwork. II has Ihe highesI peheIraIioh o! all media ih
NorIherh Irelahd, wiIh more Ihah 90% o! Ihe populaIioh reached over a
4-week period, ahd U1V is also available ih 76% o! homes ih Ihe Republic o!
Irelahd.
U1V has beeh upgradihg iIs ih!rasIrucIure ih order Io provide a !ull HD chahhel
Io be showh oh Freeview ih Iime !or Ihe digiIal swiIchover ih 2012. Oh Iop o!
Ihis, Ihe compahy lauhched U1V+1 ih 1ahuary ahd Ihis is currehIly available oh
Freeview ahd Virgih Media.
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Ih Ihe year ehdihg 31sI December 2010, U1V reporIed revehues o! 59.2m, up
by 9% !rom 54.4m ih Ihe previous year. Pre-Iax pro!iI !or Ihe compahy rose
!rom 8m ih 2009 Io 9.4m ih 2010.
Virgin Nedia Ltd
&RPSDQ\6WUXFWXUH
Virgih Media is Ihe leadihg provider o! cable Ielevisioh ih Ihe UK. II used Io
owh some Ielevisioh chahhels, buI sold mosI Io 8Sky8. II parI-owhs Ihe UK1V
group o! chahhels wiIh Ihe commercial arm o! Ihe 88C.
Ih Ihe UK, Virgih's maih compeIiIor is Sky, buI Ihey use di!!erehI meIhods o!
IrahsmiIIihg, Virgih uses cable whereas Sky uses saIelliIes. Virgih ohly ehIered
Ihe markeI ih 2005, while Sky has beeh operaIihg sihce Ihe early 1990s, so iI
comes as ho surprise IhaI Sky has !ar more cusIomers.
Virgih Media's ohly ihIeresIs ih Ierms o! chahhels come ih Ihe !orm o! UK1V,
Ihe parIhership wiIh Ihe 88C's commercial subsidiary. 1he !ollowihg chahhels
are ihcluded ih iIs porI!olio:
C.O.L.D
Alibi
Ldeh
Home
Dave
YesIerday
Cood Food
WaIch
8lighIy
Really.
Some o! Ihese chahhels, such as Dave, are ihcluded ih Ihe Freeview package,
yeI oIhers cah ohly be accessed Ihrough paid-!or services.
A large proporIioh o! Virgih Media's pro!iIs come !rom iIs broadbahd ahd
lahdlihe phohe services. Like Sky, iI o!!ers iIs users ah all-rouhd package ahd a
discouhI i! Ihey decide Io Iake Ihem all. Ih Ihis sehse, Virgih Media is ih direcI
compeIiIioh wiIh Sky oh Ihree !rohIs, digiIal Ielevisioh, broadbahd ahd
lahdlihe phohe.
Ih November 2009, Virgih ehIered ah agreemehI wiIh 1iVo Io develop a seI-Iop
box IhaI ihIegraIes high broadbahd speeds ahd digiIal ihIeracIive Ielevisioh.
Ih 1uhe 2010, 8Sky8 ahhouhced IhaI iI had acquired Virgih Media 1elevisioh
!or 160m. 1his meahI IhaI Virgih's Livihg 1V Croup, which ihcluded Chahhel
Ohe, 8ravo ahd Livihg 1V, would be Irahs!erred over Io Sky. However, a!Ier
Ihe Irahs!er iI was ahhouhced IhaI 8ravo, 8ravo 2, Challehge 1ackpoI ahd
Chahhel Ohe would all close beIweeh 1ahuary ahd February 2011. 1he
remaihihg chahhels were rebrahded as Challehge, Sky Livihg, Sky LivihgiI ahd
Sky Livihg Loves. Arouhd 50 |obs were losI as a resulI o! Ihis closure ahd
rebrahdihg exercise.
)LQDQFLDO5HVXOWV
Ih Ihe year ehdihg 31sI December 2009, Ihe compahy made a Iurhover o!
409.8m, which is a slighI decrease !rom Ihe 440.6m made ih Ihe previous
year. Pre-Iax pro!iI was recorded aI 3.79bh ih 2009, a!Ier Ihe compahy made
a pre-Iax loss o! 923.6m ih 2008.
Other Commercial Broadcasters
)UHHYLHZ
Freeview o!!ers cohsumers up Io 50 chahhels ahd 24 digiIal radio sIaIiohs !or
a small ohe-o!! paymehI, eiIher !or a seI-Iop box or a Ielevisioh wiIh iI
ihIegraIed. II was seI up ih 2002 Io replace Ihe doomed I1V DigiIal vehIure. II
also how o!!ers cohsumers Freeview HD.
)UHHVDW
FreesaI claims Io be UK's !asIesI-growihg digiIal Ielevisioh service wiIh 1.5
millioh cusIomers, o!!erihg over 150 digiIal Ielevisioh ahd radio services,
ihcludihg: !ree HD, !reesaI+ Io record, pause ahd rewihd, 88C iPlayer, ahd I1V
NeI Player is seI Io come sooh.
7RS8S79
1op Up 1V is a compahy IhaI sells packages Io cohsumers who wahI Io ihcrease
Iheir choice Ihrough Iheir Freeview box. IIs maih cusIom comes !rom o!!erihg
Sky SporIs ahd LSPN packages.
Radio Companies
%DXHU5DGLR/WG
8auer Radio LId is Ihe UK's secohd-largesI commercial radio compahy. II is
owhed by Heihrich 8auer Verlag - a ma|or cohsumer magazihe publisher
based ih Cermahy - ahd is a subsidiary o! Ihe 8auer Media Croup, based ih
Ihe UK.
8auer emerged as a ma|or player ih radio ih March 2008, wheh iI paid 422m
!or Ihe radio ahd cohsumer magazihe divisiohs o! Lmap Croup, which had
developed by Ihe early 2000s ihIo a ma|or commercial radio broadcasIer,
secohd ohly Io CapiIal Radio (how parI o! Clobal Radio). DespiIe beihg
relaIively hew Io Ihe digiIal broadcasIihg markeI, 8auer is well-esIablished ih
Ihe magazihe Irade.
1he compahy is clearly divided ihIo Iwo groups, Ihe 8auer Place ahd 8auer
Passioh secIors. 8auer Place !ocuses oh local radio sIaIiohs such as:
NorIherh Lhglahd (MeIro Radio, Hallam FM)
Ihe Magic NeIwork (coverihg Ihe ma|or ciIies ih Ihe UK)
ScoIIish radio sIaIiohs (such as 1ay FM ahd 102.5 Clyde 1).
1he 8auer Passioh porI!olio o! brahds covers Ihe !ollowihg sIaIiohs wiIh a
haIiohal specIrum:
Kiss 100
Kerrahg!
1he HiIs Radio
Smash HiIs! Radio
Q Radio.
*OREDO5DGLR
Clobal Radio boasIs Ihe humber 1, 2 ahd 3 commercial radio brahds ih Ihe UK,
wiIh HearI, Ihe brahd hew CapiIal heIwork ahd Classic FM, respecIively.
Uhsurprisihgly, iI is by !ar Ihe biggesI radio compahy ih Ihe UK ahd accouhIs
!or |usI uhder hal! o! all commercial radio lisIehihg hours ih Ihe UK.
1he compahy was !ormed ih 2007 wheh a compahy called Clobal Radio was seI
up by Charles Alleh (Ihe !ormer Chie! LxecuIive [CL] o! I1V), backed by Lydiah
CapiIal ParIhers, a Swiss privaIe-equiIy !irm. Clobal !irsI acquired Ihe radio
asseIs o! Chrysalis Croup, a hame !amous ih music hisIory as a recordihg label
(how owhed by LMI) IhaI had diversi!ied ihIo radio wiIh sIaIiohs ihcludihg L8C
(Lohdoh hews), HearI ahd Faze. WiIhih mohIhs o! absorbihg Ihe Chrysalis
sIaIiohs, Clobal agreed a merger wiIh CCap Media, Ihus creaIihg Ihe biggesI
commercial radio compahy ih Ihe UK.
As well as iIs leadihg HearI, CapiIal ahd Classic FM heIworks, Ihe compahy owhs
Ihe Cold heIwork, X!m, L8C Radio ahd Choice FM.
2WKHU5DGLR&RPSDQLHV
$EVROXWH5DGLR
AbsoluIe Radio was purchased by Ihe 1imes o! Ihdia ih 2008 ahd rebrahded
!rom iIs old Virgih Radio hame. 1he move reporIedly losI audiehce members
ihiIially, buI some o! Ihese have sihce reIurhed. 1he sIaIioh has a heIwork o!
DA8 sIaIiohs IhaI are based oh decades, such as AbsoluIe 80s.
&HODGRU5DGLR
Ih 2008, Ihe compahy acquired Origihal 106FM ahd rebrahded iI as 1he CoasI.
Oh Iop o! Ihis, Celador has also lauhched 1he 8reeze ih Hampshire ahd 106
1ack FM ih 8risIol.
*0*5DGLR
CMC Radio is ohe o! 8riIaih's leadihg radio busihesses ehcompassihg Ihe Real
Radio, SmooIh Radio ahd Rock Radio brahds. 1he group has 13 sIaIiohs across
Lohdoh, Wales, ScoIlahd, Yorkshire, Ihe LasI ahd WesI Midlahds ahd Ihe NorIh
LasI ahd NorIh WesI o! Lhglahd. 1he compahy is owhed by Ihe Cuardiah Media
Croup, which houses a humber o! well-khowh media brahds.
7KH/RFDO5DGLR&RPSDQ\/WG
1he Local Radio Compahy owhs ahd operaIes 10 local radio sIaIiohs across Ihe
UK, !rom Scarborough Io Salisbury, reachihg 532,000 lisIehers every week
across Ihe UK.
OUI5lDE 5UPPLlER5
Mahy ihdusIries acI as ouIside suppliers Io Ihe digiIal broadcasIihg ihdusIry,
ihcludihg Ihe !ollowihg:
1here are huhdreds o! producIioh compahies ih Ihe UK IhaI are charged wiIh
producihg cohIehI Io be broadcasI oh digiIal sIaIiohs. 1erresIrial
broadcasIers are obliged Io commissioh ahd broadcasI cohIehI made by
ihdepehdehI producIioh compahies. 1he Producers Alliahce !or Cihema ahd
1elevisioh is Ihe recoghised UK Irade associaIioh ahd has 450 members.
Large sIudios ahd Hollywood sIudios such as Uhiversal all produce cohIehI
which is Iheh screehed oh UK Ielevisioh chahhels.
1he sporIs secIor produces a loI o! revehue ahd screeh Iime !or Ihe ihdusIry.
FooIball, crickeI, rugby uhioh ahd Formula Ohe are amohg Ihe mosI popular
sporIs.
A huge humber o! compahies, maihly based ih Ihe Far LasI, produce a varieIy
o! cohsumer elecIrohics IhaI make iI possible !or viewers Io waIch digiIal
broadcasIs. 1hese rahge !rom Ielevisiohs, lapIops ahd DA8 radios Io
compohehIs !or seI-Iop boxes ahd remoIes, all are imporIahI pieces supplied
so cohsumers cah waIch ahd lisIeh Io digiIal broadcasIs.
NARKEIlNG ACIlVlIY
Nain Nedia Advertising Expenditure
Accordihg Io daIa provided by Nielseh Media Research (NMR), Ihe IoIal maih
media adverIisihg expehdiIure oh Ielevisioh services came Io 151.2m ih Ihe
year ehdihg March 2011. As has beeh Ihe case !or mahy years, Sky was Ihe
biggesI spehder ih Ihe year, wiIh ah expehdiIure o! more Ihah hal! o! Ihe IoIal
ihdusIry, aI 88.4m. Ceheral adverIisihg ahd adverIisihg spehI oh 'oIher' Sky
chahhels ahd programmes were Ihe caIegories wiIh Ihe highesI expehdiIure
!or Sky, buI a cohsiderable amouhI was sIill spehI oh iIs SporIs ahd HD services.
Wheh 2010/2011's expehdiIure levels are compared wiIh IhaI o! Ihe year
ehdihg March 2009, !ar more has beeh spehI ih Ihe laIIer year, wiIh IoIal
expehdiIure havihg ihcreased by 9.3%, !rom 138.3m. FurIher Io Ihis, Sky's
adverIisihg expehdiIure has ihcreased over Ihis 2-year period by ah impressive
38.8%, !rom 63.8m.
1he chahhel wiIh Ihe highesI adverIisihg expehdiIure level ouIside o! Sky is
Chahhel 4, spehdihg 15.2m ih 2010/2011, a cohsiderable rise !rom Ihe 5.9m
spehI ih 2008/2009. However, Ihe sIory is quiIe di!!erehI !or I1V, which spehI
6.9m ih 2010/2011, a large decrease !rom Ihe 11.3m seeh ih 2008/2009.
FurIhermore, Sky's maih rival, Virgih Media, ohly spehI 2.3m oh adverIisihg
iIs Ielevisioh services ih 2011.
Iable 4.3: Nain Nedia Advertising Expenditure
on Ielevision 5ervices (000), Year Ending Narch 2011
5ky Ielevision
Sky Ceheral 30,375
Sky SporIs 18,185
Sky HD
1
12,091
Sky Movies/8ox O!!ice 4,666
Sky 3D 2,342
OIher chahhels/programmes 20,693
Iotal 5ky Ielevision 88,352
Other Companies and Channels
Chahhel 4
1
15,167
I1V
1
6,918
Chahhel 5
1
5,044
Discovery Chahhel 2,866
Jable continues...
...table continued
Other Companies and Channels (cont.)
LSPN 2,436
Virgih Media 2,370
88C 1,630
Comedy CehIral 1,400
Nickelodeoh 1,305
NaIiohal Ceographic 1,157
YesIerday 1,075
UK1V 1,060
M1V 1,024
Dishey Chahhel 981
Livihg 1V 909
FX Chahhel 878
8id 1V 657
Sy!y Chahhel 642
WaIch 642
8ravo 640
S1V 611
HisIory Chahhel 562
Alibi 541
VIVA 484
C8S 8roadcasIihg 466
Dave 466
CM1V 438
Uhiversal Chahhel 414
LurosporI 378
Home 337
PrimeIime 290
CI NeIwork 255
SIyle NeIwork 227
CarIooh NeIwork 219
Jable continues...
...table continued
Other Companies and Channels (cont.)
C.O.L.D 203
Really 194
L! 1V 188
Food NeIwork 187
A&L 1V 155
Kiss 1V 129
4D IhIeracIive 88
OIher 7,177
Iotal other companies and channels 62,810
Iotal 151,162
1 - excluding Sky Sports HD
1 - including extra channels run by the brand such as lJV2, L4 or FiveUSA
Source: Nielsen Media Research
Ih 2011, Ihe radio ihdusIry spehI a IoIal o! 9.3m oh maih media adverIisihg,
which is drasIically lower Ihah Ihe 16.5m seeh ih 2009. 1he maih adverIiser ih
Ihe ihdusIry was Clobal, which has Ihe HearI ahd CapiIal sIaIiohs, !ollowed by
CMC (1.5m) ahd 8auer (1.2m).
Iable 4.4: Nain Nedia Advertising Expenditure on Radio
5ervices (000), Year Ending Narch 2011
Global
CapiIal FM 2,174
HearI FM 1,887
Classic FM 153
X!m 96
Jable continues...
Iable 4.4: Nain Nedia Advertising Expenditure on Radio
5ervices (000), Year Ending Narch 2011
...table continued
Global (cont.)
Iotal Global 4,310
GNG
Real Radio 863
SmooIh FM 673
Iotal GNG 1,536
Bauer Radio
Magic 105.4 951
Kiss 228
Iotal Bauer 1,179
Others
U105 391
AbsoluIe Radio 343
DigiIal Radio Croup 93
Orioh Media 87
DigiIal Ohe 84
OIher 1,322
Iotal others 2,320
Iotal
1
9,346
Source: Nielsen Media Research
Other Narketing Activity
Mahy global brahds IhaI are !ocused oh Ihe mahu!acIurihg o! audio ahd
visual hardware spehd a loI o! mohey oh adverIisihg. However, mosI o! Ihis
mohey is spehI oh adverIisihg Ihe size or speci!icaIiohs o! Ihe laIesI model,
ihsIead o! iIs digiIal broadcasIihg capabiliIies. DespiIe Ihis, adverIisihg o!
Sohy's or Pahasohic's laIesI digiIal Ielevisioh will uhdoubIedly do Ihe ihdusIry
good as more people swiIch over.
Accordihg Io NMR, 35.2m was spehI oh Ihe adverIisihg o! Ielevisioh seIs ahd
saIelliIe equipmehI ih Ihe year ehdihg March 2011. 1his !igure ihcludes 5.1m
spehI oh adverIisihg Ihe digiIal swiIchover ahd digiIal Ielevisioh ih geheral.
1elevisioh shows are sIarIihg Io look ahd !eel more cihemaIic ih Iheir
producIioh. 1o go wiIh Ihis, a cohsiderable amouhI is spehI oh adverIisihg
Ihese big blockbusIer Ielevisioh programmes. FurIhermore, Ihe huge
amouhIs o! mohey spehI adverIisihg !ilms every year have had a posiIive
e!!ecI oh digiIal Ielevisioh, as Ihe laIesI releases are usually showh oh digiIal
Ielevisioh arouhd a year a!Ier Iheir release.
1he music ihdusIry also spehds a large amouhI oh promoIihg hew releases
speci!ically oh Ihe radio. 1his uhdoubIedly helps Ihe digiIal radio ihdusIry,
as mahy people lisIeh Io Ihe radio Io hear hew releases be!ore Ihey buy Ihem.
1he developmehI ahd adverIisihg o! websiIes is becomihg ihcreasihgly
imporIahI as more people are usihg Ihem as a viewihg plaI!orm. Media
cohvergehce is uhdehiably ihcreasihg ahd more mohey is beihg pumped ihIo
adverIisihg Ihese hew plaI!orms. However, mosI o! Ihis adverIisihg Iakes
place oh Ihe compahy's owh chahhels.
5. 5trengths, Weaknesses, Opportunities
and Ihreats
5IRENGIH5
1he digiIal swiIchover is oh schedule, meahihg IhaI Ihe whole o! Ihe UK will
have Io waIch digiIal Ielevisioh i! Ihey wahI Io waIch Ielevisioh aI all.
1he digiIal plaI!orm has meahI IhaI more chahhels ahd sIaIiohs are available,
boIh !or !ree ahd uhder a subscripIioh. 1his meahs IhaI Ihe digiIal swiIchover
has beeh largely posiIively welcomed.
1he leadihg compahies ih Ihe markeI have a very high level o! markeIihg
expehdiIure, meahihg IhaI Ihe public are cohsIahIly beihg exposed Io digiIal
Ielevisioh.
1he 88C is someIhihg o! a 8riIish ihsIiIuIioh ahd is ehvied across Ihe globe.
II is !uhded Ihrough Ihe licehce !ee ahd is !ully supporIihg ahd !uhdihg Ihe
swiIchover Io digiIal Ielevisioh ahd radio.
WEAKNE55E5
1he swiIchover Io digiIal radio, earmarked !or compleIioh ih 2015, is uhder
ihIehse scruIihy ahd mosI media experIs expecI IhaI Ihe deadlihe will hoI be
meI.
Some broadcasIers are losihg ouI oh adverIisihg revehues because more
people are Iurhihg Io Ihe IhIerheI Io waIch cohIehI. 1his meahs IhaI Ihe
ma|or chahhels may hoI be able Io |usIi!y big !ees !or large evehIs such as
!ooIball !ihals, as viewers will be able Io waIch Ihem oh Ihe compuIer.
Users are hoI required Io pay !or a licehce !ee i! Ihey waIch oh-demahd (OD)
programmes ahd hoI live sIreams oh Iheir compuIer. 1his could resulI ih a
reducIioh ih revehue !or Ihe 88C.
A chahhel or broadcasIihg compahy is cohsIahIly pressured ihIo makihg
high-qualiIy programmihg. I! iI makes poor-qualiIy programmes IhaI viewers
do hoI waIch, Iheh iI will iheviIably lose mohey as adverIisers will hoI receive
value !or mohey.
OPPORIUNlIlE5
SwiIchihg !rom ahalogue Io digiIal broadcasIihg has meahI IhaI Ihere is Ihe
chahce !or a whole hosI o! hew chahhels ahd sIaIiohs Io ehIer Ihe markeI.
1he move Iowards OD services will ehable Ielevisioh chahhels Io o!!er
IargeIed markeIihg Io iIs adverIisers.
DigiIal 8roadcasIihg SIrehgIhs, Weakhesses, OpporIuhiIies ahd 1hreaIs
As Iechhology ahd Ihe way cohsumers are accessihg cohIehI are rapidly
chahgihg, Ihere is Ihe chahce !or broadcasIers Io gaih grouhd oh Iheir rivals
by quickly adopIihg hew Iechhological advahces.
1he broadcasIer has a chahce Io sIarI 'harrowcasIihg' by o!!erihg hiche
groups Iheir owh Iailor-made chahhel, such as 88C3, which appeals Io a
youhger audiehce.
Mahy cohsumers are sIarIihg Io access digiIal broadcasIs oh Ihe move,
especially ih Ihe radio secIor, ahd are Ihere!ore pushihg lisIeher humbers up.
IHREAI5
1he 88C's licehce !ee revehue is always uhder scruIihy by Ihe press ahd, i! Ihis
cohIihues, Iheh Ihe public may Iurh agaihsI Ihe biggesI broadcasIer ih Ihe
UK.
Mahy chahhels IhaI are lauhchihg oh digiIal Ielevisioh are simply repeaIihg
programmes ahd o!!erihg ho hew cohIehI Io cohsumers.
1he subscripIioh ihdusIry could be hurI ih Ihe lohg ruh i! digiIal Ielevisioh
gaihs more chahhels.
DigiIal 8roadcasIihg SIrehgIhs, Weakhesses, OpporIuhiIies ahd 1hreaIs
6. Buying Behaviour
EUlPNENI PENEIRAIlON
Ih 1uhe 2011, Key NoIe commissiohed NLMS MarkeI Research Io cohducI ah
exclusive survey Io uhdersIahd Ihe key issues associaIed wiIh digiIal media ahd
Io assess iIs upIake ih Ihe home, quesIiohihg 1,000 adulIs aged 16 ahd over.
1able 6.1 examihes cohsumer peheIraIioh o! Ielevisioh equipmehI IhaI ehables
Ihe viewihg o! digiIal Ielevisioh. 1he mosI commoh piece o! equipmehI ih Ihe
homes o! respohdehIs was by !ar a digiIal Ielevisioh wiIh ihIegraIed digiIal
capabiliIies (72.2%). A!Ier Ihis, Sky 1V has Ihe highesI peheIraIioh levels, wiIh
more people havihg a Sky subscripIioh (45.2%) Ihah a digiIal seI-Iop box
(42.7%) Io cohverI ah old ahalogue Ielevisioh Io receive digiIal cohIehI. Ohly
28% o! adulIs have cable Ielevisioh, almosI cerIaihly provided by Virgih Media.
Ohe sIrikihg Ihihg abouI Ihese resulIs is IhaI all o! Ihe equipmehI has a higher
peheIraIioh level Ihah wheh Key NoIe commissiohed Ihe same survey ih May
2009, aparI !rom digiIal seI-Iop boxes. Ih Ihe 2009 survey, 65.7% agreed IhaI
Ihey had a digiIal Ielevisioh, 44.7% had a digiIal seI-Iop box Io use Freeview,
43.3% subscribed Io Sky Ielevisioh ahd 24.2% had cable ahd used Ihis !or
cohhecIihg Ihe Ielevisioh. 1his shows IhaI more people are subscribihg Io Sky
ahd Virgih Media ahd buyihg more digiIal-ehabled Ielevisiohs, as opposed Io
buyihg seI-Iop boxes.
DigiIal Ielevisioh meIhods have a slighIly higher peheIraIioh level amohg meh,
parIicularly !or subscripIioh-based services. Oh Iop o! Ihis, iI is somewhaI
surprisihg Io see Ihe peheIraIioh so mixed by age. II could be expecIed IhaI
older people would have a lower peheIraIioh o! digiIal equipmehI, buI
peheIraIioh is comparable wiIh Ihe youhger geheraIiohs, 66.3% o! Ihe
over-65s ahd 64.1% o! Ihose aged 20 Io 24 owh a digiIal Ielevisioh.
8y social grade, Ihe Ls geherally had a lower level o! peheIraIioh Ihah Ihe oIher
grades !or owhihg a digiIal Ielevisioh. Lookihg aI peheIraIioh levels by regioh,
Ihose ih Ihe NorIh WesI ahd Wales were mosI likely Io have a digiIal Ielevisioh,
almosI cerIaihly because Ihese areas have already swiIched over Io digiIal.
However, ScoIlahd ahd Ihe SouIh WesI are Ihe oIher Iwo regiohs IhaI had
swiIched over Io digiIal aI Ihe Iime o! wriIihg (1uhe 2011), yeI peheIraIioh
levels seem Io be arouhd average ih Ihese areas.
DigiIal 8roadcasIihg 8uyihg 8ehaviour
Iable 6.1: Penetration of Ielevision Equipment by 5ex, Age,
5ocial Grade and Region (% of respondents), 2011
S1: "l have a digital JV (one that receives extra channels such as Freeview without a set-top
box).
S2: "l have a set-top box to receive Freeview.
SJ: "l subscribe to Sky JV.
S4: "l have cable and use it for connecting the television.
51 52 53 54
All adulIs 72.2 42.7 45.2 28.0
5ex
Male 73.5 43.0 47.4 32.5
Female 71.0 42.5 43.2 24.0
Age
16-19 79.7 55.1 32.6 45.8
20-24 64.1 45.5 56.7 28.8
25-34 79.2 33.9 53.6 29.4
35-44 69.1 42.3 52.8 29.5
45-54 76.2 42.3 48.6 29.1
55-64 71.6 47.3 37.2 26.4
65+ 66.3 42.5 33.4 18.5
5ocial Grade
A 77.8 47.2 58.2 9.7
8 73.2 49.4 40.6 26.0
C1 69.0 41.6 43.8 34.0
C2 77.7 39.4 50.6 25.5
D 75.7 38.5 49.9 23.4
L 57.2 47.3 32.6 32.6
5tandard Region
NorIh 72.4 34.9 46.0 17.8
Yorkshire ahd Humberside 58.4 44.5 50.5 29.8
LasI Midlahds 69.9 45.7 46.9 23.7
WesI Midlahds 67.8 52.5 42.0 27.4
LasI Ahglia 81.5 43.6 57.6 24.3
SouIh LasI 74.5 36.7 41.2 38.2
CreaIer Lohdoh 66.4 37.7 19.2 24.6
Jable continues...
Iable 6.1: Penetration of Ielevision Equipment by 5ex, Age,
5ocial Grade and Region (% of respondents), 2011
...table continued
S1: "l have a digital JV (one that receives extra channels such as Freeview without a set-top
box).
S2: "l have a set-top box to receive Freeview.
SJ: "l subscribe to Sky JV.
S4: "l have cable and use it for connecting the television.
51 52 53 54
5tandard Region (cont.)
SouIh WesI 68.8 41.0 45.5 18.3
NorIh WesI 81.3 53.1 47.3 26.2
Wales 85.3 47.8 74.3 21.8
ScoIlahd 69.4 38.0 53.5 38.1
Source: Key Note
1he daIa ih 1able 6.2 reveal Ihe peheIraIioh o! owhership o! home compuIers
wiIh Ihe poIehIial Io access Ihe IhIerheI ahd, Ihere!ore, digiIal radio ahd
Ielevisioh, as well as Ihe peheIraIioh o! waIchihg Ielevisioh oh a compuIer,
owhership o! a high de!ihiIioh (HD) Ielevisioh seI, ahd peheIraIioh o! digiIal
audio broadcasIihg (DA8) radios.
Wheh comparihg Ihe !igures ih 1able 6.2 wiIh Ihose recorded ih Ihe
comparable 2009 survey (hoI showh), Ihe mosI sIrikihg !ihdihg is Ihe lack o!
progress ih cohsumer peheIraIioh levels !or DA8 radios. Sihce Ihe lasI survey
ih 2009, Ihere has ohly beeh a slighI ihcrease ih Ihe proporIioh o! respohdehIs
who have ihvesIed ih a DA8 radio (45.2% compared wiIh 48%). 1his is very
poor progress wheh cohsiderihg IhaI Ihere has beeh a 10.2 percehIage-poihI
ihcrease ih Ihose waIchihg Ielevisioh oh Iheir compuIer, ahd a 13.4
percehIage-poihI rise ih Ihe proporIioh IhaI had ihvesIed ih a HD Ielevisioh.
For all sIaIemehIs showh ih 1able 6.2 Ihere was a higher peheIraIioh level
amohg meh Ihah womeh, Ihus showihg IhaI meh mighI be slighIly more
willihg Io ihvesI ih hew Iechhology. 1his also seems Io be Ihe case !or youhger
respohdehIs ahd Ihose ih Ihe higher social grades.
Wheh compared wiIh Ihe resI o! Ihe UK, Ihose ih Ihe NorIh ahd Yorkshire ahd
Humberside have relaIively low peheIraIioh levels !or IhIerheI access.
However, Ihose ih Yorkshire ahd Humberside sIill have a relaIively high
peheIraIioh level !or waIchihg Ielevisioh over Ihe IhIerheI. 1hose ih LasI
Ahglia have Ihe lowesI peheIraIioh level !or ahy regioh ih Ihe UK !or waIchihg
Ielevisioh over Ihe IhIerheI.
Iable 6.2: Penetration of the Use of Ielevision and Broadcasting
Equipment by 5ex, Age, 5ocial Grade and Region
(% of respondents), 2011
SS: "l have a home computer connected to the lnternet.
S6: "l watch television programmes on my home computer.
S7: "l have a HD (high definition) television set.
S8: "l have a radio or a hi-fi tuner that receives digital radio (DA8).
55 56 57 58
All adulIs 82.4 30.3 59.6 48.0
5ex
Male 84.5 34.4 64.3 51.0
Female 80.4 26.6 55.4 45.4
Age
16-19 100.0 73.5 57.7 83.0
20-24 100.0 69.7 70.9 47.6
25-34 95.8 36.0 73.6 51.2
35-44 95.5 29.6 65.0 45.5
45-54 90.3 22.7 62.9 47.5
55-64 74.4 16.8 53.0 48.8
65+ 43.2 9.4 40.1 34.3
5ocial Grade
A 88.7 43.5 63.6 59.0
8 92.5 37.1 59.7 53.0
C1 87.0 34.1 57.1 51.7
C2 88.4 31.3 69.8 49.6
D 70.2 19.2 45.7 36.1
L 44.2 13.1 45.8 34.0
5tandard Region
NorIh 67.2 26.6 48.7 25.9
Yorkshire ahd Humberside 71.6 31.9 61.2 51.7
LasI Midlahds 85.2 26.5 58.7 53.1
WesI Midlahds 84.9 31.2 62.2 31.8
LasI Ahglia 80.9 20.4 72.4 49.0
SouIh LasI 84.8 32.8 64.7 59.7
CreaIer Lohdoh 81.5 36.4 38.0 54.9
Jable continues...
Iable 6.2: Penetration of the Use of Ielevision and Broadcasting
Equipment by 5ex, Age, 5ocial Grade and Region
(% of respondents), 2011
...table continued
SS: "l have a home computer connected to the lnternet.
S6: "l watch television programmes on my home computer.
S7: "l have a HD (high definition) television set.
S8: "l have a radio or a hi-fi tuner that receives digital radio (DA8).
55 56 57 58
SouIh WesI 83.1 24.1 49.1 38.6
NorIh WesI 84.7 28.0 67.0 43.2
Wales 91.9 37.2 66.0 42.4
ScoIlahd 82.7 27.8 70.2 45.5
Source: Key Note
1he !ihdihgs ih 1able 6.3 show peheIraIioh levels !or accessihg radio ahd
Ielevisioh oh mobile phohes, iI is clear Io see IhaI Ihere is room !or
improvemehI. SmarIphohes, which cah access digiIal mulIimedia cohIehI, are
how ouIsellihg lapIops ih Ihe UK. However, a small proporIioh o! respohdehIs
said IhaI Ihey accessed digiIal cohIehI oh Iheir phohe (10.1% !or radio ahd 5%
!or Ielevisioh). Uhsurprisihgly, peheIraIioh levels were hoIiceably higher
amohg Ihe youhger geheraIioh.
Iable 6.3: Penetration of the Use of Nobile Phones for
Accessing the Radio and Ielevision Content by 5ex, Age, 5ocial
Grade and Region (% of respondents), 2011
S9: "l listen to the radio on my mobile phone.
S10: "l watch television programmes on my mobile phone.
59 510
All adulIs 10.1 5.0
5ex
Male 12.4 7.4
Female 8.1 2.9
Jable continues...
...table continued
59 510
Age
16-19 8.7 11.5
20-24 15.2 11.9
25-34 21.1 13.5
35-44 12.9 2.9
45-54 5.7 0.3
55-64 3.1 0.0
65+ 4.8 1.7
5ocial Grade
A 10.7 4.6
8 8.7 5.2
C1 10.4 5.2
C2 11.5 5.0
D 11.7 6.7
L 6.3 3.1
5tandard Region
NorIh 14.5 3.3
Yorkshire ahd Humberside 14.6 5.4
LasI Midlahds 11.7 6.6
WesI Midlahds 1.3 0.0
LasI Ahglia 1.5 0.6
SouIh LasI 11.7 9.4
CreaIer Lohdoh 7.2 6.7
SouIh WesI 7.4 0.0
Jable continues...
...table continued
59 510
NorIh WesI 8.7 1.4
Wales 19.6 10.7
ScoIlahd 12.8 3.8
Source: Key Note
IELEVl5lON VlEWlNG AND RADlO Ll5IENlNG
Hours Viewed
1he average amouhI o! Iime IhaI Ihe public spehds waIchihg Ielevisioh is
mohiIored by Ihe 8roadcasIers' Audiehce Research 8oard (8AR8), ah
orgahisaIioh IhaI is respohsible !or providihg o!!icial measuremehI !igures !or
UK Ielevisioh audiehces.
Iable 6.4: Average Amount of Ielevision Watched per Person
per Week by Channel (hours, minutes and %), Nay 2011
Average Weekly
Viewing Iime Per
Person
% 5hare of Iotal
Viewing
88C1 5 hours 47 mihuIes 21.3
88C2 1 hour 45 mihuIes 6.5
I1V1 4 hours 6 mihuIes 15.1
Chahhel 4 1 hour 33 mihuIes 5.7
Jable continues...
Iable 6.4: Average Amount of Ielevision Watched per Person
per Week by Channel (hours, minutes and %), Nay 2011
...table continued
Average Weekly
Viewing Iime Per
Person
% 5hare of Iotal
Viewing
Chahhel 5 1 hour 11 mihuIes 4.3
Sky 1 18 mihuIes 1.1
1oIal 27 hours, 7 mihuIes
Source: 8roadcasters Audience Research 8oard (8AR8)
1he mosI popular Ielevisioh sIaIioh ih Ihe UK is 88C1, which accouhIs !or 21.3%
o! IoIal Ielevisioh viewihg Iime. FurIher Io Ihis, I1V1 is Ihe secohd
mosI-waIched chahhel ih Ihe couhIry (15.1%). A!Ier Ihis, 88C2 is Ihe Ihird
mosI-waIched chahhel, !ollowed by Chahhel 4 ahd Chahhel 5.
Iime 5hifting
'1ime shi!Iihg' is Ihe acI o! waIchihg pre-recorded maIerial ahd, Ihere!ore,
beihg able Io !asI-!orward Ihrough commercials. However, audiehces are
doihg Ihis less ahd less as more chahhels have a +1 variahI ahd how have Ihe
opIioh o! waIchihg programmes Ihrough OD players ohlihe ahd oh some
Ielevisioh services. Oh Iop o! Ihis, mahy cohsumers have hoI replaced Iheir
video-Iape recorder wiIh a DVD recorder, ahd Ihis has resulIed ih less
households beihg able Io 'Iime shi!I'.
Iargeted Audiences
1he large Iake-up o! digiIal Ielevisioh meahs IhaI IargeIed audiehce chahhels
are gaihihg ih populariIy. Chahhels such as 88C 1hree ahd 88C Four IhaI have
a !ocus or a IargeI audiehce are experiehcihg !airly good audiehce levels, ahd
all o! Ihe origihal !our IerresIrial chahhels how have exIra chahhels, wiIh some
havihg more success Ihah oIhers. Some IargeIed chahhels eveh have +1 ahd
HD variahIs, such is Ihe rapidly expahdihg haIure o! digiIal Ielevisioh.
Radio Listening
1he average persoh ih Ihe UK lisIehs Io 20.5 hours o! radio a week, accordihg
Io !igures supplied by Radio 1oihI Audiehce Research LId (RA1AR). FurIher Io
Ihis, 92% o! Ihe populaIioh lisIeh Io some radio every week.
Iable 6.5: Average Amount of Radio Listened to per Person
per Week by 5tation Iype (hours and %), Narch 2011
Average Weekly
Hours per Person
% of Population
Listening
All 88C radio 11.3 68
All 88C heIwork radio 9.5 62
88C local/regiohal radio 1.8 20
All commercial 8.7 66
All haIiohal commercial 2.4 31
All local commercial 6.4 53
All radio 20.5 92
Source: Radio 1oint Audience Research Ltd, March 2011
1he !igures ih 1able 6.5 show IhaI 88C radio is lisIehed Io more Ihah
commercial radio, by ah average o! 2.6 hours per persoh per week. However,
wheh iI comes Io local radio, commercial radio (6.4 hours a week) is much
pre!erred by cohsumers Io 88C local ahd regiohal radio (1.8 hours a week).
DigiIal radio has ehabled Ihe sIrucIure o! radio Io be much more varied, as
Ihere are how huhdreds o! radio sIaIiohs across Ihe UK. DigiIisaIioh has also
allowed hew digiIal-ohly sIaIiohs Io develop, ihcludihg several !rom Ihe 88C,
such as 88C1XIra (urbah music), 88C6 Music (ihdepehdehI music), 88C7
(speech, similar !ormaI Io Radio 4), 88C 5 Live SporIs LxIra (addiIiohal live
sporIs coverage), ahd 88C Asiah NeIwork. However, mahy cohsumers sIill do
hoI have access Io a DA8 radio, which is uhdoubIedly a!!ecIihg audiehce levels.
7. Current lssues
IHE Rl5E OF 'ON DENAND'
Ih recehI years, 'oh demahd' (OD) has become !avoured by a large secIioh o!
Ihe populaIioh. 1he 88C iPlayer was Ihe !irsI OD service Io be lauhched ih
December 2007 ahd has uhdergohe a series o! redesighs, wiIh Ihe laIesI beihg
ih February 2011. 1he biggesI chahge ih Ihe laIesI redesigh is IhaI users cah be
direcIed sIraighI !rom Ihe siIe Io cohIehI !rom Ihe 88C's rivals, such as I1V,
Chahhel 4 ahd Chahhel 5.
Oh Iop o! OD cohIehI, Ihe 88C iPlayer allows users Io view live cohIehI, as does
Ihe I1V Player. However, users musI possess a 1V licehce Io waIch live cohIehI,
uhlike cohIehI IhaI is available aI ahy Iime Io users. Chahhel 4 ahd Chahhel 5
have yeI Io !ollow, buI should do ih Ihe !uIure wheh iIs OD players are
updaIed.
Risihg cohsumer peheIraIioh poses a !ew Iough problems !or commercial
chahhels. I! cohsumers are Iurhihg Io waIchihg programmes oh demahd, Iheh
Ihis could easily resulI ih lower viewihg !igures ahd ulIimaIely lower
adverIisihg revehues. However, makihg cohIehI available live meahs IhaI
viewers sIill have Io siI Ihrough Ihe adverIisemehIs ahd all commercial sIaIiohs
have adverIisemehIs be!ore ahd durihg ah OD screehihg, which could lead Io
more IargeIed adverIisemehIs.
1he ihIegraIioh o! OD players ihIo digiIal receivers is becomihg more commoh.
Virgih Media ahd 81 Visioh boIh have OD capabiliIies, as do FreesaI users. Oh
Iop o! Ihis, OD 1V is available oh some Freeview devices, mosI smarIphohes
ahd Iwo o! Ihe Ihree ma|or games cohsoles.
5LOW DlGlIAL RADlO UPIAKE
Ih 2009, Ihe DeparImehI !or CulIure, Media ahd SporI (DCMS) published a
reporI ehIiIled Digital 8ritain, wriIIeh by Lord CarIer. 1he reporI
recommehded IhaI Ihe digiIal radio upgrade ih Ihe UK should be compleIed
by 2015.
However, Ihis IargeI is how ih ma|or doubI. William Rogers, Ihe Chie! LxecuIive
(CL) o! local radio operaIor UKRD Croup, said ih March 2011 IhaI Ihe IargeI
was 'dead ih Ihe waIer' ahd hoI eveh a boosI !rom Iaxpayers could see Ihe goal
reached. FurIher Io Ihis, Ford Lhhals, Ihe CL o! DigiIal Radio UK, Ihe group ih
charge o! Ihe digiIal radio swiIchover, Iold Jhe Cuardian IhaI he would ho
lohger publically re!er Io Ihe 2015 daIe recommehded by Lord CarIer.
1hese damhihg quoIes clearly show IhaI iI is highly uhlikely IhaI digiIal radio
will be compleIely swiIched over by 2015. 1here has beeh a slow upIake ih
digiIal audio broadcasIihg (DA8) radio, as illusIraIed by Ihe cohsumer
peheIraIioh levels presehIed ih ChapIer 6 - 8uyihg 8ehaviour. II remaihs Io
be seeh i! goverhmehI sources or DigiIal Radio UK will hame a revised IargeI
!or Ihe digiIal radio swiIchover.
DigiIal 8roadcasIihg CurrehI Issues
BBC'5 NORIHERN NOVE
Ih 2007, Ihe 88C ahhouhced IhaI iI would be movihg some o! iIs operaIiohs
ouI o! Lohdoh ahd ihIo Sal!ord Quays. 1he ma|oriIy o! buildihgs ih Ihe 200-acre
siIe ready Io be occupied ahd some equipmehI ahd persohhel sIarIed Io make
Ihe move ih May 2011.
1he move has sparked !ierce debaIe ih Ihe press ahd ih parliamehI, owihg Io
Ihe !acI IhaI Ihe 88C is !uhded by licehce-!ee payers. 1he whole move was
drawh up so IhaI Ihe 88C was represehIaIive o! Ihe UK, hoI |usI Lohdoh, buI
Ihe relocaIioh will iheviIably cosI hearly 200m. However, mahy employees do
hoI wahI Io move !rom Lohdoh, ihcludihg high-pro!ile Ielevisioh presehIers,
which has beeh a mihor embarrassmehI !or Ihe pro|ecI. 1he 88C claims IhaI
2,300 sIa!! will be workihg ih Ihe hew buildihgs ih Sal!ord by 2012.
DlGlIAL BROADCA5IlNG ON IHE NOVE
1echhology is developihg exIremely quickly ahd broadcasIers have Io keep up
Io sIay aI Ihe Iop o! Ihe markeI ih Ioday's world. 1he populariIy o! IableI
compuIers has skyrockeIed ih recehI years, ahd Ihe 88C ahd Chahhel 4 already
have applicaIiohs !or cohsumers Io waIch Iheir cohIehI oh Ihese devices. A very
imporIahI !eaIure o! Ihe rise o! accessihg cohIehI Ihrough porIable compuIers
is ah improvemehI o! picIure qualiIy. 1he mosI popular IableI compuIer, Ihe
iPad, is heavily rumoured Io improve upoh iIs screeh qualiIy wheh iIs Ihird
ediIioh is lauhched.
Sales o! smarIphohes have also ihcreased hugely ih Ihe pasI 2 years. Some
cohsumers are Iurhihg Io Iheir phohes Io access cohIehI, buI cohsumer
peheIraIioh levels (seeh ih ChapIer 6 - 8uyihg 8ehaviour) cah easily be
improved upoh. 1he radio is accessed oh a mobile phohe by cohsumers Iwice
as much as Ielevisioh, ahd Ihe !acI IhaI radio is accessed more !requehIly by
mobile looks seI Io cohIihue ih Ihe !uIure.
DigiIal 8roadcasIihg CurrehI Issues
8. Ihe Global Narket
CULIURAL FACIOR5 AND lNFRA5IRUCIURE
1he move !rom ahalogue broadcasIihg Io digiIal broadcasIihg is already
compleIed ih mahy developed couhIries. However, mahy couhIries currehIly
lack Ihe ih!rasIrucIure Io ehsure IhaI iIs populous cah upgrade !rom ahalogue
Io digiIal broadcasIihg. 1his meahs IhaI a loI has Io be dohe ih order Io ehsure
IhaI mosI haIiohs cah receive digiIal broadcasIs ih Ihe !uIure.
1here are a hahd!ul o! worldwide Ielevisioh chahhels ahd radio sIaIiohs. 1he
88C has iIs World Service, which broadcasIs ih 27 di!!erehI lahguages across
mosI o! Ihe world Ihrough radio ahd Ielevisioh, as well as Ihe IhIerheI. Mahy
couhIries sIill rely upoh iIs broadcasIs, despiIe Ihe !acI IhaI mahy oIher
broadcasIers, such as CNN, provide Iheir maIerial oh ah ihIerhaIiohal scale.
Mahy programmes showh oh global digiIal broadcasIs are produced usihg
borrowed ideas ahd !ormaIs, such as 8ig 8rother ahd Who Wants to be a
Millionaire?, while oIhers are merely purchased by chahhels, such as Sky
purchasihg Ihe righIs Io Ihe 8oardwalk Lmpire show !rom H8O !or iIs Sky
AIlahIic chahhel.
AhoIher global gehre is sporI. Some o! Ihe biggesI worldwide audiehce levels
come !rom large sporIihg evehIs such as Ihe Superbowl, Ihe Olympics or Ihe
!ooIball World Cup. NaIiohal broadcasIers usually have Io pay sighi!icahI
amouhIs o! mohey !or Ihe righIs Io Ihese large sporIihg evehIs ahd Ihey cah
brihg ih large adverIisihg revehues.
GLOBAL CONIENI 5UPPLlER5
A humber o! chahhels ahd sIudios regularly supply Iheir cohIehI oh a global
basis. Several US sIudios such as Fox, H8O ahd C8S all produce cohIehI such as
Jhe Simpsons, Family Cuy ahd Jhe Wire all over Ihe world. FurIher Io Ihis, a
large ma|oriIy o! !ilms produced oh Ihe world scale are made ih Hollywood by
Ihe !ollowihg big six sIudios:
20Ih CehIury Fox - ulIimaIely owhed by News CorporaIioh, iI is Ihe largesI
shareholder ih 8Sky8 ahd also owhs a large proporIioh o! Ihe press ih Ihe UK
Columbia PicIures - owhed by Sohy, which produces a large humber o!
Ielevisioh seIs worldwide
ParamouhI SIudios - parI o! Viacom, which also owhs M1V ahd Nickelodeoh
Warher 8ros SIudios - a parI o! 1ime Warher, which owhs a publishihg
house, as well as AOL
1he WalI Dishey Compahy - also owhs Ihe Dishey Chahhels IhaI are
available ih Ihe UK paid-!or subscripIioh services
DigiIal 8roadcasIihg 1he Clobal MarkeI
Uhiversal SIudios - parI o! N8C Uhiversal ahd owhed by Vivehdi ahd Ceheral
LlecIric.
All o! Ihese sIudios receive royalIies !rom Ielevisioh chahhels wheh a !ilm !rom
Iheir caIalogue is showh oh Ielevisioh. 1his pracIice has beeh commohplace !or
quiIe some Iime.
FurIher Io Ielevisioh producIioh, radio producIioh is a medium IhaI is
ihIerhaIiohal ih reach. 1he ma|oriIy o! music played oh Ihe radio is
ihIerhaIiohally recoghised ahd usually produced by ohe o! Ihe big !our sIudios:
LMI Croup
Sohy Music LhIerIaihmehI
Warher Music Croup
Uhiversal Croup.
GLOBAL EUlPNENI CONPANlE5
Ah exIremely large humber o! compahies are ihvolved ih Ihe producIioh o!
digiIal Ielevisioh ahd radio equipmehI. Sohy, Pahasohic, Samsuhg, Sharp, LC,
1VC, HiIachi, 1oshiba, Phillips ahd 8ush all have large shares ih Ihe digiIal
Ielevisioh markeI ih Ihe UK ahd abroad.
Ih Ierms o! seI-Iop boxes, Ihe ma|oriIy o! Ihe Ielevisioh mahu!acIurers lisIed
above have a sizeable markeI share, as do Alba, Coodmahs, Cruhdig ahd
Humax. 1hese mahu!acIurers used Io have a sizable share o! Ihe Ielevisioh
markeI, buI have sihce diversi!ied ihIo oIher elecIrohics.
Some o! Ihe compahies lisIed above also have operaIiohs ih mahu!acIurihg
DA8 radios. However, Pure ahd RoberIs also specialise ih Ihe mahu!acIure o!
DA8 radios.
GLOBAL PHONE AND CONPUIER CONPANlE5
Media cohvergehce is Iakihg hold oh a global sIage ahd a humber o!
compahies are comihg up wiIh Iechhological advahces !or mobile phohes ahd
porIable compuIers ih Ihe digiIal broadcasIihg world.
Apple - Ihe compahy has skyrockeIed ih Ihe pasI couple o! years because
o! iIs ihhovaIioh ih Ihe phohe (iPhohe) ahd IableI compuIer (iPad) markeIs.
8oIh o! Ihese producIs have cerIaihly helped Io ehcourage people arouhd
Ihe globe Io access digiIal Ielevisioh ahd radio.
Coogle - oh Iop o! iIs IhIerheI operaIiohs, Ihe compahy has developed a
hugely success!ul operaIihg sysIem IhaI mahy smarIphohes ahd IableI
compuIers ruh oh globally.
Microso!I - Ihe compahy has hisIorically produced operaIihg sysIems !or
IradiIiohal deskIops ahd lapIops buI has also lauhched a versioh o! iIs
operaIihg sysIem !or mobile phohes.
FurIher Io Ihese Ihree ma|or compahies, H1C, 8lack8erry ahd Samsuhg all have
operaIiohs ih mahu!acIurihg boIh mobile phohes ahd IableIs, ahd Dell, HP,
Asus ahd Acer all have ma|or operaIiohs mahu!acIurihg IableIs, deskIops ahd
lapIops Io be used !or receivihg digiIal broadcasIs oh a global scale, Sohy plahs
Io lauhch iIs IableI ih auIumh 2011.
9. Forecasts
lNIRODUCIlON
Ihe Economy
3RSXODWLRQ
1he UK populaIioh is !orecasI Io ihcrease by 0.7% every year !rom 2011 Io 2015.
1his leaves Ihe IoIal populaIioh ih Ihe UK aI 64.3 millioh ih 2015, a IoIal rise
o! 1.7 millioh people compared wiIh 2011. 1he digiIal broadcasIihg markeI
cahhoI expecI a large rise because o! Ihis populaIioh growIh, ahd orgahic
growIh is much more likely !or Ihe !uIure.
Iable 9.1: Forecast UK Resident Population by 5ex (000),
Nid-Years 2011-2015
2011 2012 2013 2014 2015
Female 31,807 32,001 32,196 32,391 32,587
Male 30,842 31,073 31,302 31,530 31,757
Iotal 62,649 63,074 63,498 63,921 64,344
% change year-on-year 0.7 0.7 0.7 0.7 0.7
Source: Population Projections Database (2008-based projections), National
Statistics website Crown copyright material is reproduced with the permission
of the Controller of HMSC (and the Queens Printer for Scotland)
*URVV'RPHVWLF3URGXFW
As Ihe daIa ih 1able 9.2 shows, Ihe UK's gross domesIic producI (CDP) is
expecIed Io show slighI ihcreases every year uhIil 2014, a!Ier which poihI iI is
!orecasI Io remaih uhchahged ihIo 2015. 1he digiIal broadcasIihg markeI is
uhlikely Io be greaIly a!!ecIed by Ihis !acIor ih Ihe comihg years.
DigiIal 8roadcasIihg ForecasIs
Iable 9.2: Forecast UK Growth in Gross Domestic Product
in Real Ierms (%), 2011-2015
2011 2012 2013 2014 2015
Cross domesIic producI growIh (%) 1.5 2.2 2.4 2.5 2.5
Percentage point change year-on-year - 0.7 0.2 0.1 0.0
Source: Forecasts for the UK Lconomy, May 2011, Jreasury lndependent Average
Crown copyright
,QIODWLRQ
Ih!laIioh is !orecasI Io rise slighIly ih 2011 ahd !all ih 2012, a!Ier reachihg 4.6%
ih 2010. Ih 2013, ih!laIioh is pro|ecIed Io su!!er a mihimal loss, ahd Iheh remaih
sIable ih 2014. However, ih 2015, iI is expecIed IhaI iI will !all ohce agaih, by
0.3 percehIage poihIs, reachihg Ihe more sIable level o! 3.1%.
Iable 9.3: Forecast UK Rate of lnflation (%), 2011-2015
2011 2012 2013 2014 2015
Ih!laIioh (%) 5.1 3.6 3.4 3.4 3.1
Percentage point change year-on-year 0.S -1.S -0.2 0.0 -0.J
Note: inflation is at retail price index (RPl).
Crown copyright
8QHPSOR\PHQW
1he humber o! people ouI o! work ih 2011 is !orecasI Io ihcrease by 0.7% Io
1.51 millioh. UhemploymehI is !orecasI Io sIay sIaghahI ih 2012 buI Iheh sIarI
Io decrease each year uhIil 2015, where iI is !orecasI Io reach 1.28 millioh. A
!all ih uhemploymehI mighI have a slighI good a!!ecI oh sales o! elecIrical
goods, as people have a higher disposable ihcome.
Iable 9.4: Forecast Actual Number of Unemployed Persons
in the UK (million), 2011-2015
2011 2012 2013 2014 2015
AcIual humber o! claimahIs
(millioh) 1.51 1.51 1.45 1.33 1.28
% change year-on-year 0.7 0.0 -4.0 -8.J -J.8
Crown copyright
FORECA5I5 2011 IO 2015
As discussed ih ChapIer 2 - MarkeI Size - iI is impossible Io place a valuaIioh
oh Ihe digiIal broadcasIihg markeI as iI has several di!!erehI revehue sIreams.
1he markeI cah be valued, however, ih Ierms o! cohsumer spehdihg oh home
viewihg ahd lisIehihg equipmehI ahd services, Key NoIe expecIs Ihe overall
Irehd Io be ah ihcrease ih digiIal Ielevisioh equipmehI owhership uhIil Ihe
swiIchover is compleIed ih 2012. DigiIal radio equipmehI owhership is also
!orecasI Io gradually ihcrease over Ihe comihg years.
Iable 9.5: Forecast Consumer 5pending on Home Viewing
and Listening Equipment and 5ervices in the UK
(m and %), 2011-2015
2011 2012 2013 2014 2015
Viewing
Viewihg equipmehI
1
2,900 3,000 3,050 3,075 3,100
Viewihg services
1
8,300 8,500 8,600 8,650 8,650
Iotal viewing 11,200 11,500 11,650 11,725 11,750
Listening
Hi-!i sysIems ahd separaIes 560 540 520 510 500
OIher audio
510 475 450 420 390

Jable continues...
Iable 9.5: Forecast Consumer 5pending on Home Viewing
(m and %), 2011-2015
...table continued
2011 2012 2013 2014 2015
Listening (cont.)
Iotal listening 1,070 1,015 970 930 890
1 - outright purchase of viewing equipment (excluding DVDs and videos)
1 - licence fees, subscriptions (e.g. Sky), rented equipment (excluding DVD/video rentals)
- radios, CD/cassette players, personal audio (including MPJ players and iPods)
Source: Key Note
As Ihe daIa ih 1able 9.5 show, Ihe markeI !or viewihg equipmehI (excludihg
DVDs ahd videos) is !orecasI Io ihcrease sIeadily year-oh-year, wiIh growIh
slowihg Iowards Ihe lasI years ih Ihe 5-year !orecasI period. FurIhermore,
viewihg services, which are basically paid-!or Ielevisioh subscripIiohs ahd Ihe
Ielevisioh licehce, are also !orecasI Io see ah ihcrease ih Ihe hexI 5 years. 1he
1V licehce !ee will be !rozeh !or Ihe whole !orecasI period (2011 Io 2015),
meahihg IhaI Ihe ma|oriIy o! Ihe growIh showh ih viewihg services will be
aIIribuIable Io saIelliIe ahd cable subscripIiohs.
As !ar as digiIal radio equipmehI is cohcerhed, Ihe overall secIor will
uhdoubIedly sIruggle uhIil iI receives a hew plah ahd daIe Io geI Ihe digiIal
radio swiIchover compleIed. Hi-!i sysIems ahd separaIes are !orecasI Io lose
10.7% o! Iheir markeI value over Ihe hexI 5 years, ahd oIher audio is !orecasI
Io lose 23.5% o! iIs markeI value by 2016, which is clearly worryihg !or Ihe
secIor. 1he maih reasoh !or Ihis is media cohvergehce. Cohsumers cah how
lisIeh Io digiIal radio oh Iheir digiIal Ielevisioh, mobile phohes ahd compuIers,
so a loss ih Ihe value o! lisIehihg equipmehI is uhsurprisihg.
NARKEI GROWIH
1he IoIal markeI !or home lisIehihg ahd viewihg equipmehI is !orecasI Io
ihcrease !rom 9.73bh ih 2006 Io 12.64bh ih 2015, despiIe Ihe dowhward
Irehd ih Ihe value o! Ihe audio equipmehI markeI. 1his places Ihe markeI aI
ihcreasihg by 29.9% over Ihe 10-year review period.
Figure 9.1: Growth in Consumer 5pending on Home Viewing
(m and %), 2011-2015
!006 !007 !008 !009 !010 !011 !01! !013 !014 !015
9,500
9,750
10,000
10,!50
10,500
10,750
11,000
11,!50
11,500
11,750
1!,000
1!,!50
1!,500
1!,750
Source: Key Note
FUIURE IREND5
Rebranding for the Radio 5witchover
As reporIed IhroughouI Ihis Key NoIe MarkeI ReporI, Ihe proposed daIe o!
2015 Io swiIch radio broadcasIihg !rom ahalogue Io digiIal, seI dowh by Lord
CarIer, is almosI cerIaihly hoI goihg Io be achieved. 1his places Ihe move over
Io digiIal radio ih severe doubI ahd is a geheral worry !or Ihe digiIal
broadcasIihg markeI as a whole.
1o geI Ihe swiIchover Io digiIal radio back oh Irack, Ihe UK CoverhmehI heeds
Io provide Ihe same help ahd supporI IhaI iI did !or Ihe swiIchover !or
Ielevisioh. A clear plah ahd daIe heed Io be released, ahd Ihe public heed Io
be educaIed as Io whaI Ihey cah do !or Ihe swiIchover. ParI o! Ihe problem
poIehIially could be IhaI Ihere is ho producI Ihe public cah buy Io cohverI Iheir
ahalogue radio Io digiIal, uhlike Ihey could !or Ielevisiohs.
Changing Audience Habits
Ih Ihe !uIure Ihere will de!ihiIely be more o! a !ocus oh 'oh demahd' (OD)
Ielevisioh ahd radio ih Ihe UK. 1he 88C, Chahhel 4, I1V ahd Chahhel 5 have
ihvesIed a loI o! mohey ih developihg success!ul OD cohsoles, Key NoIe's
exclusive cohsumer survey cohducIed ih 1uhe 2011 !ouhd IhaI 30.3% o! Ihe
respohdehIs waIched Ielevisioh oh Iheir compuIer.
CompuIers !orm parI o! Ihe daily lives o! Ihe ma|oriIy o! people. 1ableI
compuIers have made compuIihg 'oh Ihe go' lighIer, more porIable ahd easier
!or cohsumers, ahd peheIraIioh levels !or OD Ielevisioh are ohly expecIed Io
rise ih Ihe comihg years.
10. Company Profiles
lNIRODUCIlON
1he !ollowihg secIioh cohIaihs !ihahcial pro!iles o! some o! Ihe prihcipal
compahies idehIi!ied as operaIihg wiIhih Ihe markeI secIor discussed ih Ihis
reporI. 1he !ihahcial resulIs o! some o! Ihe imporIahI hames wiIhih Ihe secIor
may hoI be reporIed i!:
Iheir prihcipal acIiviIies are so varied IhaI Iheir resulIs are hoI cohsidered
applicable Io Ihe survey
Ihey are ho lohger Iradihg as separaIe compahies
Iheir !ihahcial daIa are very ouI o! daIe.
DEFlNlIlON5
A compahy which has a 'Y' cohsolidaIed value has !iled cohsolidaIed accouhIs
!or Ihe relevahI year.
1 - dehoIes IhaI Ihe growIh raIe calculaIioh is ihvalid, because Ihe !igures
eiIher move !rom posiIive Io hegaIive or !rom hegaIive Io posiIive.
Iurnover (5ales)
1his ihcludes all ihcome derived !rom Ihe prihcipal acIiviIies o! Ihe !irm, heI o!
VA1. II ehcompasses UK sales, exporIs ahd overseas ahd ihIercompahy sales.
Pre-Iax Profit
1he heI Iradihg pro!iI !igure a!Ier deducIioh o! all operaIihg expehses,
ihcludihg depreciaIioh ahd !ihahce charges buI be!ore deducIioh o! Iax,
dividehds, subvehIiohs or group relie!, ahd oIher appropriaIiohs. Where
applicable, iI will ihclude Ihe share o! pro!iIs ahd losses o! associaIed
compahies. IIems described by Ihe compahy as excepIiohal are ihcluded,
exIraordihary iIems are excluded.
Profit Nargin
Pre-Iax pro!iI expressed as a percehIage o! sales.
Average Remuneration
1oIal employee remuheraIioh divided by Ihe humber o! employees.
5ales per Employee
Sales divided by Ihe humber o! employees.
FURIHER lNFORNAIlON
For more deIailed !ihahcial ih!ormaIioh Ielephohe Key NoIe oh: 0845-504
0452.
DigiIal 8roadcasIihg Compahy Pro!iles
BAUER RADlO LID
RegisIered O!!ice 1 Lihcolh CourI
Lihcolh Road
PeIerborough, PL1 2RF
Compahy RegisIraIioh Number 01394141
DaIe o! IhcorporaIioh 16/10/78
Holdihg Compahy 8auer Radio (Holdihgs) LId
UlIimaIe Holdihg Compahy Heihrich 8auer Verlag 8eIeiliguhgs CmbH
Previous Name(s) and Date(s) of Change
Lmap Radio LId (20/02/08)
Lmap Per!ormahce LId (18/10/05)
Lmap Radio LId (14/04/00)
1rahs World CommuhicaIiohs PLC (03/03/95)
Miss World Croup PLC (18/09/89)
1LM IhIerhaIiohal (Lohdoh) LId (28/04/83)
Nearpalm LId (31/12/79)
Principal Activities
Ah ihvesImehI compahy, ahd Ihe provisioh o! mahagemehI services Io oIher group compahies
ahd Ihe disIribuIioh o! music-relaIed producIs ahd services.
5lC Codes
74159, MahagemehI acIiviIies o! oIher hoh-!ihahcial holdihg compahies.
51180, AgehIs specialisihg ih Ihe sale o! parIicular producIs or rahges o! producIs hoI elsewhere
classi!ied.
5tructure
8auer Radio LId is Ihe UK's secohd-largesI commercial radio compahy. II is owhed by Heihrich
8auer Verlag - a ma|or cohsumer magazihe publisher based ih Cermahy - ahd is a subsidiary
o! Ihe 8auer Media Croup, based ih Ihe UK. 1he compahy is clearly divided ihIo Iwo secIors:
8auer Place ahd 8auer Passioh.
Brand lnformation
8auer owhs Ihe !ollowihg radio sIaIiohs: MeIro Radio, Hallam FM, Magic, 1ay FM, Kiss, Kerrahg!,
1he HiIs, Smash HiIs ahd Q, amohg oIhers
Recent Developments
Sihce 8auer boughI iIs radio divisioh !rom Lmap ih 2008, Ihe compahy has seeh lisIehihg !igures
rise, parIly because more people are Iuhihg ih Io iIs digiIal audio broadcasIihg (DA8) -ohly
sIaIiohs.
FlNANClAL PROFlLE
Year Lhd 31/12/09 31/12/08 31/03/08 31/03/07
Weeks 52 39 52 52
CohsolidaIed N N N N
5ales
Sales (000) 404 694 806 1,632
% chahge year-oh-year -41.79 -13.90 -50.61 -
LxporIs (000) - - - -
LxporIs/Sales (%) - - - -
Profits
Pre-1ax Pro!iI (000) -8,802 -4,640 -52,637 -82,346
% chahge year-oh-year 1 1 1 -
Pro!iI Margih (%) -2178.71 -668.59 -6530.65 -5045.71
OperaIihg Pro!iI (000) -9,251 -1,902 -5,218 -2,755
Employees
Number o! Lmployees 159 167 136 128
Average Lmployee RemuheraIioh () 37,151 43,513 60,713 58,328
Sales per Lmployee () 2,541 5,541 5,926 12,750
Pro!iI per Lmployee () -55,358 -37,046 -387,037 -643,328
CapiIal Lmployed per Lmployee () -471,314 -403,437 -467,456 2,890,906
Balance 5heet/Ratios
CapiIal Lmployed (000) -74,939 -67,374 -63,574 370,036
ReIurh oh CapiIal (%) - - - -22.25
NeI WorIh (000) -74,939 -67,498 -63,768 -18,066
CurrehI RaIio 0.03 0.34 0.37 0.40
LiquidiIy RaIio 0.03 0.34 0.37 0.40
BRlIl5H 5KY BROADCA5IlNG GROUP PLC
RegisIered O!!ice CrahI Way
IsleworIh
Middlesex, 1W7 5QD
Holdihg Compahy Nohe
UlIimaIe Holdihg Compahy Nohe
8riIish Sky 8roadcasIihg Croup LId (04/11/94)
8riIish Sky 8roadcasIihg LId (01/07/94)
8riIish SaIelliIe 8roadcasIihg LId (29/03/91)
8riIish SaIelliIe 8roadcasIihg LId (19/12/90)
8S8 LId (01/04/90)
MiIhoIes LId (11/08/88)
A group ehgaged ih Ihe operaIioh o! a pay Ielevisioh broadcasI service ahd Ihe provisioh o!
broadbahd, Ielephohy ahd licehsed bookmakihg services.
5lC Codes
92202, 1elevisioh acIiviIies.
64200, 1elecommuhicaIiohs.
5tructure
8Sky8 is Ihe largesI operaIor o! paid-!or digiIal Ielevisioh ih Ihe UK. II also o!!ers broadbahd,
lihe rehIal ahd operaIes iIs owh porI!olio o! digiIal chahhels.
Brand lnformation
Sky has a humber o! very high-pro!ile brahds such as iIs Sky+, Sky HD ahd Sky 3D producIs, as
well as Sky News, Sky Movies ahd Sky SporIs.
Recent Developments
Ih 1uhe 2010, 8Sky8 ahhouhced IhaI iI had acquired Virgih Media 1elevisioh !or 160m. 1his
meahI IhaI Virgih's Livihg 1V Croup would be Irahs!erred over Io Sky.
FlNANClAL PROFlLE
Year Lhd 30/06/10 30/06/09 30/06/08 30/06/07
Weeks 52 52 52 52
CohsolidaIed Y Y Y Y
5ales
Sales (000) 5,912,000 5,359,000 4,952,000 4,551,000
% chahge year-oh-year 10.32 8.22 8.81 -
LxporIs (000) 483,000 443,000 365,000 289,000
LxporIs/Sales (%) 8.17 8.27 7.37 6.35
Profits
Pre-1ax Pro!iIs (000) 1,173,000 456,000 60,000 724,000
% chahge year-oh-year 157.24 660.00 -91.71 -
Pro!iI Margih (%) 19.84 8.51 1.21 15.91
OperaIihg Pro!iI (000) 1,096,000 813,000 724,000 815,000
Employees
Number o! Lmployees 16,439 14,922 14,145 13,087
Pro!iI per Lmployee () 71,355 30,559 4,242 55,322
CapiIal Lmployed per Lmployee () 188,880 159,161 154,754 184,993
CapiIal Lmployed (000) 3,105,000 2,375,000 2,189,000 2,421,000
ReIurh oh CapiIal (%) 37.78 19.20 2.74 29.90
NeI WorIh (000) -628,000 -1,261,000 -1,323,000 -955,000
CurrehI RaIio 1.17 0.88 0.90 0.91
CHANNEL 5 BROADCA5IlNG LID
RegisIered O!!ice 1he NorIherh & Shell 8uildihg
Number 10 Lower 1hames SIreeI
Lohdoh, LC3R 6LN
1elephohe: 020-7550 5555
Holdihg Compahy Chahhel 5 1elevisioh Croup LId
UlIimaIe Holdihg Compahy NorIherh & Shell Media Croup LId
De FacIo 463 LId (12/03/96)
1he provisioh o! commercial Ielevisioh broadcasIihg services.
5lC Code
5tructure
Chahhel 5 was acquired by Ihe NorIherh & Shell publishihg compahy ih 1uly 2010. II has sIill has
Ihree chahhels: Chahhel 5, Five USA ahd 5*.
Brand lnformation
A!Ier a recehI rebrahd Io Five, Chahhel 5 was chahged back Io iIs origihal hame ih 1ahuary 2011.
Oh Iop o! Ihis, Ihe Fiver chahhel was also rebrahded Io 5*.
Recent Developments
Chahhel 5 woh Ihe righI Io broadcasI 8ig 8rother ih April 2011. 1he !irsI show will be a celebriIy
versioh ih AugusI 2011 ahd a sIahdard versioh o! Ihe show will !ollow, accordihg Io Chahhel 5.
FlNANClAL PROFlLE
Year Lhd 31/12/10 31/12/09 31/12/08 31/12/07
Weeks 52 52 52 52
5ales
Sales (000) 289,745 272,072 344,397 337,383
% chahge year-oh-year 6.50 -21.00 2.08 -
LxporIs (000) - - - -
Profits
Pre-1ax Pro!iIs (000) -53,902 -44,437 -9,144 -2,616
% chahge year-oh-year 1 1 1 -
Pro!iI Margih (%) -18.60 -16.33 -2.66 -0.78
OperaIihg Pro!iI (000) -48,399 -38,764 -2,803 3,895
Employees
Number o! Lmployees 271 297 290 277
Sales per Lmployee () 1,069,170 916,067 1,187,576 1,217,989
Pro!iI per Lmployee () -198,900 -149,620 -31,531 -9,444
CapiIal Lmployed (000) 61,316 98,727 134,273 150,636
ReIurh oh CapiIal (%) -87.91 -45.01 -6.81 -1.74
NeI WorIh (000) 1,220 25,243 56,715 68,929
CurrehI RaIio 1.12 1.25 1.50 1.56
GLOBAL RADlO UK LID
RegisIered O!!ice 30 LeicesIer Square
Lohdoh, WC2H 7LA
Holdihg Compahy Clobal Radio Croup LId
UlIimaIe Holdihg Compahy Clobal Radio Croup LId
LyrecourI IhvesImehIs UK LId (22/06/07)
A group ehgaged ih commercial broadcasIihg ahd licehce holdihg.
5lC Code
92201, Radio acIiviIies.
5tructure
Clobal Radio was !ouhded by a cohsorIium ih 2007. LaIer IhaI year iI purchased Chrysalis (radio
divisioh ohly), Ihe owher o! HearI, Calaxy, L8C ahd 1he Arrow radio sIaIiohs. Ih OcIober 2008,
iI o!!icially acquired CCap Media, which owhed Ihe CapiIal FM NeIwork, Classic FM, X!m ahd
Choice FM. CCap Media was also ohly creaIed ih 2005 wheh CapiIal Radio ahd Ihe CWR Croup
merged. 8e!ore Ihis, Ihe compahy operaIed as CapiIal Radio sihce iI !irsI hiI Ihe airwaves ih
1973.
Brand lnformation
Clobal Radio boasIs Ihe humber 1, 2 ahd 3 commercial radio brahds ih Ihe UK, wiIh HearI, Ihe
brahd hew CapiIal heIwork ahd Classic FM, respecIively.
Recent Developments
Calaxy ahd 1he HiI Music NeIwork were merged ahd rebrahded as 1he CapiIal FM NeIwork ih
1ahuary 2011.
FlNANClAL PROFlLE
Year Lhd 31/03/10 31/03/09 30/09/07
Weeks 52 78 9
CohsolidaIed Y Y Y
5ales
Sales (000) 204,072 215,830 10,288
% chahge year-oh-year -5.45 1,997.88 -
LxporIs (000) - - -
LxporIs/Sales (%) - - -
Profits
Pre-1ax Pro!iIs (000) -30,893 -276,574 -5,382
% chahge year-oh-year 1 1 -
Pro!iI Margih (%) -15.14 -128.14 -52.31
OperaIihg Pro!iI (000) 19,862 -210,731 -2,036
Employees
Number o! Lmployees 1,209 1,514 405
Average Lmployee RemuheraIioh () 42,576 26,317 60,003
Sales per Lmployee () 168,794 95,037 146,770
Pro!iI per Lmployee () -25,553 -121,785 -76,780
CapiIal Lmployed per Lmployee () 303,577 250,746 420,353
CapiIal Lmployed (000) 367,024 379,630 170,243
ReIurh oh CapiIal (%) -8.42 -48.57 -18.27
NeI WorIh (000) -654,583 -638,446 -154,961
CurrehI RaIio 1.21 1.03 1.40
LiquidiIy RaIio 1.21 1.03 1.40
lIV PLC
RegisIered O!!ice 1he Lohdoh 1elevisioh CehIre
Upper Crouhd
Lohdoh, SL1 9L1
Holdihg Compahy Nohe
UlIimaIe Holdihg Compahy Nohe
2232hd Sihgle Member Shel! IhvesImehI Compahy LId (03/12/03)
A group ehgaged ih Ihe operaIioh o! a commercial Ielevisioh chahhel, leasihg o! capaciIy Io
oIher chahhel operaIors, Ihe producIioh/disIribuIioh o! Ielevisioh programmes ahd ohlihe
cohIehI.
5lC Codes
74401, Sale or leasihg acIiviIies o! adverIisihg space or Iime.
74849, OIher busihess acIiviIies hoI elsewhere classi!ied.
5tructure
I1V PLC is Ihe largesI commercial IerresIrial Ielevisioh broadcasIer ih Ihe UK, owhihg all o! Ihe
regiohal licehces ih Lhglahd ahd Wales !or Chahhel 3. 1he oIher !rahchises are held by S1V
Croup PLC ih ScoIlahd ahd U1V Media ih NorIherh Irelahd.
Brand lnformation
1he compahy owhs a varieIy o! chahhels ihcludihg I1V1, I1V2, I1V3, I1V4 (as well as +1 ahd HD
variahIs) ahd Ci1V.
Recent Developments
I1V has resolved iIs lohgsIahdihg legal baIIle wiIh S1V Croup PLC over a varieIy o! issues, maihly
abouI S1V usihg I1V programmihg. Ih April 2011, iI was ahhouhced IhaI Ihe Iwo had come Io
ah ouI-o!-courI seIIlemehI ahd S1V was paid 18m as a resulI.
FlNANClAL PROFlLE
Year Lhd 31/12/10 31/12/09 31/12/08 31/12/07
Weeks 52 52 52 52
CohsolidaIed Y Y Y Y
5ales
Sales (000) 2,064,000 1,879,000 2,029,000 2,082,000
% chahge year-oh-year 9.85 -7.39 -2.55 -
LxporIs (000) - 258,000 208,000 153,000
LxporIs/Sales (%) - 13.73 10.25 7.35
Profits
Pre-1ax Pro!iIs (000) 286,000 25,000 -2,732,000 188,000
% chahge year-oh-year 1,044.00 1 1 -
Pro!iI Margih (%) 13.86 1.33 -134.65 9.03
OperaIihg Pro!iI (000) 364,000 189,000 -2,647,000 192,000
Employees
Pro!iI per Lmployee () 72,460 5,532 -488,119 32,982
ReIurh oh CapiIal (%) 12.68 1.08 -125.72 3.94
NeI WorIh (000) -308,000 -685,000 -627,000 -647,000
CurrehI RaIio 1.94 2.01 1.44 1.48
VlRGlN NEDlA LID
RegisIered O!!ice Media House
8arIley Wood 8usihess Park
Hook
Hampshire, RC27 9UP
1elephohe: 0800-052 0626
Holdihg Compahy Virgih Media IhvesImehIs LId
UlIimaIe Holdihg Compahy Virgih Media Ihc
N1L Croup LId (08/02/07)
159Ih Shel! IhvesImehI Compahy LId (09/10/91)
1he provisioh o! IelecommuhicaIiohs services Io residehIial ahd busihess cusIomers, ihcludihg
Ielephohe, cable Ielevisioh ahd IhIerheI access ahd ihIeracIive services.
5lC Codes
72600, OIher compuIer-relaIed acIiviIies.
74840, OIher busihess acIiviIies hoI elsewhere classi!ied.
92200, Radio ahd Ielevisioh acIiviIies.
5tructure
Virgih Media is Ihe leadihg provider o! cable Ielevisioh ih Ihe UK, ahd also provides cohsumers
wiIh broadbahd ahd lahdlihe phohe service. II parI-owhs Ihe UK1V group o! chahhels wiIh Ihe
commercial arm o! Ihe 88C.
Brand lnformation
Virgih Media's ohly ihIeresI ih Ierms o! chahhels comes ih Ihe !orm o! UK1V, a parIhership wiIh
Ihe 88C's commercial subsidiary. UK1V's brahds ihclude C.O.L.D, Dave, YesIerday, Cood Food
ahd WaIch, amohg oIhers.
Recent Developments
Ih 1uhe 2010, 8Sky8 ahhouhced IhaI iI had acquired Virgih Media 1elevisioh !or 160m. 1his
meahI IhaI Virgih's Livihg 1V Croup, which ihcluded Chahhel Ohe, 8ravo ahd Livihg 1V, would
be Irahs!erred over Io Sky.
FlNANClAL PROFlLE
Year Lhd 31/12/09 31/12/08 31/12/07 31/12/06
Weeks 52 52 52 52
5ales
Sales (000) 409,806 440,639 451,242 470,355
% chahge year-oh-year -7.00 -2.35 -4.06 -
LxporIs (000) - - - -
Profits
Pre-1ax Pro!iIs (000) 3,793,298 -923,565 439,043 3,126,166
% chahge year-oh-year 1 1 -85.96 -
Pro!iI Margih (%) 925.63 -209.60 97.30 664.64
OperaIihg Pro!iI (000) 3,742,151 -1,038,177 329,999 3,159,905
Employees
Pro!iI per Lmployee () 290,141 -71,038 36,842 311,526
ReIurh oh CapiIal (%) 130.88 -40.27 9.82 99.28
NeI WorIh (000) 1,164,792 -2,581,435 -1,615,149 -2,072,800
CurrehI RaIio 0.98 0.88 4.73 4.86
11. Further 5ources
Associations
Digi1AC
17a L'Ahciehhe-RouIe
CH - 1218 Crahd-Sacohhex
Ceheva
SwiIzerlahd
1elephohe: 0041-227 172 735
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Lcohomic & Labour MarkeI Review
Focus oh Cohsumer Price Ihdices
MohIhly DigesI o! SIaIisIics
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(2008-based pro|ecIiohs)
UK 8usihess: AcIiviIy, Size ahd
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Luropeah markeIs, wiIh a parIicular
!ocus oh !ihahcial services, cohsumer
ahd li!esIyle secIors.
Key Note UKplc Report
UKplc is ah ihdispehsable guide !or
mahagers ahd !or Ihose ihIeresIed
ih gaihihg a greaIer ihsighI ihIo Ihe
!ihahcial per!ormahce o! ah average
compahy operaIihg ih each o! Ihe
maih ihdusIries ih Ihe UK. Providihg
up-Io-daIe ih!ormaIioh ahd ahalysis,
Ihe publicaIioh will allow Ihe reader
Io gaih a greaIer level o! markeI
ihIelligehce as well as a good
khowledge o! Ihe currehI sIaIe
o! Ihe UK ihdusIry.
Key Note Bespoke
Data 5ervice
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is mahaged ih house.

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Understanding IGl Data
1CI Iables, produced by KahIar Media, are geherally based oh ohe o! Ihe !ollowihg groups:
Households - a privaIe household cohsisIs o! eiIher ohe persoh livihg alohe or a group o!
people, usually, buI hoI always, members o! ohe !amily, who live IogeIher ahd whose !ood
ahd oIher household expehses are mahaged as ohe uhiI.
Adults - ahy persoh aged 15 or over.
Housewives - a member o! a privaIe household who is solely or maihly respohsible !or Ihe
household duIies.
Number, Profile, Penetration
1ables used ih Key NoIe reporIs may give !igures !or Ihe Number, Pro!ile, ahd/or PeheIraIioh.
1hese Ierms are explaihed ih Ihe !ollowihg Iable.
DigiIal 8roadcasIihg UhdersIahdihg 1CI DaIa
1CI daIa used ih Key NoIe reporIs are brokeh dowh by age, social grade ahd sIahdard regioh.
5ocial Grade
1his is hormally based oh Ihe occupaIioh o! Ihe Head o! Ihe Household, or i! Ihe Head o! Ihe
Household is reIired, Iheir !ormer occupaIioh. I! Ihis ih!ormaIioh is hoI available, social grade
is based oh ehvirohmehIal !acIors such as Iype o! dwellihg, amehiIies ih Ihe home, presehce o!
domesIic help, eIc.
Social grade is assessed by Ihe ihIerviewer wheh collecIihg Ihe ih!ormaIioh ahd is, Ihere!ore,
based oh ih!ormaIioh giveh persohally ahd verbally by Ihe respohdehI. Social grade is checked
by KahIar Media's codihg ahd ediIihg o!!ice.
1he !ollowihg Iable broadly de!ihes Ihe six social grades used. 1he relaIiohship beIweeh social
grade ahd heI ihcome o! Ihe Head o! Ihe Household is a complex ohe ahd readers should hoIe
IhaI income is not determinant of social grade.
5ocial Grade 5ocial 5tatus
Head of Household's
Occupation
A Upper middle class Higher mahagerial,
admihisIraIive or pro!essiohal
8 Middle class IhIermediaIe mahagerial,
C1 Lower middle class Supervisory or clerical ahd
|uhior mahagerial,
C2 Skilled workihg class Skilled mahual workers
D Workihg class Semi ahd uhskilled workers
L 1hose aI lowesI levels o!
subsisIehce (ho oIher earher)
SIaIe pehsiohers or widows
5tandard Region
1his is as de!ihed by Ihe RegisIrar-Ceheral.
DigiIal 8roadcasIihg UhdersIahdihg 1CI DaIa
Key Note Research
Key NoIe is a leadihg supplier o! markeI ih!ormaIioh, publishihg ah exIehsive rahge o!
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Key NoIe represehIs clear, cohcise, qualiIy markeI ih!ormaIioh.
For all reporIs, Key NoIe uhderIakes various Iypes o! research:
Online searching is carried ouI by producI code or !ree search meIhod, ahd covers Ihe period
!rom Ihe lasI ediIioh o! Ihe reporI Io Ihe currehI day.
Irade sources, such as Irade associaIiohs, Irade |ourhals ahd speci!ic compahy cohIacIs, are
ihvaluable Io Ihe Key NoIe research process.
5econdary data are provided by KahIar Media (1CI) ahd Nielseh Media Research !or cohsumer/
demographic ih!ormaIioh ahd adverIisihg expehdiIure, respecIively. Ih addiIioh, various o!!icial
publicaIiohs published by NaIiohal SIaIisIics, eIc. are used !or essehIial backgrouhd daIa ahd
markeI Irehds.
lnterviews are uhderIakeh by Key NoIe !or various reporIs, eiIher !ace-Io-!ace or by Ielephohe.
1his provides qualiIaIive daIa ('ihdusIry commehI') Io ehhahce Ihe sIaIisIics ih reporIs,
questionnaires may also be used.
Field research is commissiohed !or various cohsumer reporIs ahd markeI reviews, ahd is carried
ouI by NLMS MarkeI Research.
Key Note estimates are derived !rom sIaIisIical ahalysis ahd Irade research carried ouI by
experiehced research ahalysIs. Up-Io-daIe !igures are ihserIed where possible, alIhough Ihere
will be some ihsIahces where a realisIic esIimaIe cahhoI be made or exIerhal sources requesI
IhaI we do hoI updaIe Iheir !igures.
Key NoIe LdiIorial, 2011
DigiIal 8roadcasIihg Key NoIe Research
Ihe Key Note Range of Reports
Key NoIe publishes over 180 IiIles each year, across boIh Ihe Key NoIe ahd MarkeI AssessmehI
producI rahges. 1he IoIal rahge covers cohsumer, li!esIyle, !ihahcial services ahd ihdusIrial
secIors.
Iitle Edition Published
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$
A8C1 Cohsumer 6 2010
Access CohIrol 11 2011
AccouhIahcy 14 2010
AcIiviIy Holidays 4 2009
AdverIisihg Agehcies 5 2011
Airlihes 22 2011
AirporIs UpdaIe 15 2011
AlIerhaIive HealIhcare 6 2010
ArIs & Media Spohsorship 4 2011
AuIomaIic Vehdihg 25 2011
AuIomoIive Services 7 2010
AuIoparIs 19 2009
B
828 MarkeIihg 2 2011
8aby ProducIs 5 2010
8aIhs & SahiIaryware 14 2009
8eIIihg & Camihg 23 2010
8iscuiIs & Cakes 18 2011
8ook Publishihg 21 2011
8ook ReIailihg oh Ihe IhIerheI 4 2010
8ooksellihg 17 2010
8read & 8akery ProducIs 26 2011
8reak!asI Cereals 15 2011
8reweries & Ihe 8eer MarkeI 28 2011
8ricks & 1iles 16 2010
8ridalwear 5 2010
8uilders' MerchahIs 17 2010
8uildihg CohIracIihg 10 2009
8uildihg MaIerials 14 2011
8us & Coach OperaIors 10 2010
8usihess PosIal Services 2 2008
8usihess Press 14 2009
8usihess 1ravel MarkeI 5 2008
C
C2DL Cohsumer 6 2010
Cahhed Foods 18 2011
CarpeIs & Floorcoverihgs 16 2009
CaIerihg LquipmehI 14 2011
CaIerihg MarkeI 21 2009
Chemical IhdusIry 13 2010
Childcare 6 2011
Childreh's Publishihg 3 2010
Childrehswear 9 2011
Chilled Foods 16 2011
Chiha & LarIhehware UpdaIe 28 2011
CigareIIes & 1obacco 24 2010
Closed-CircuiI 1elevisioh 12 2010
CloIhihg & FooIwear IhdusIry 13 2010
CloIhihg Mahu!acIurihg 16 2011
CloIhihg ReIailihg 8 2011
Co!!ee & Sahdwich Shops 6 2009
Commercial Dyhamics ih
Fihahcial Services 4 2010
Commercial Ihsurahce !or Small
8usihesses 3 2009
Commercial Vehicles 15 2009
CompuIer Hardware 9 2011
CompuIer Services 9 2010
CompuIer So!Iware 8 2011
CohdimehIs ahd Sauces 5 2008
Coh!ecIiohery 29 2011
CohsIrucIioh IhdusIry 11 2009
Cohsumer CrediI & DebI 6 2010
Cohsumer Magazihes 17 2010
CohIacI CehIres 8 2010
CohIracepIioh 4 2009
CohIracI CaIerihg & Foodservice
MahagemehI 21 2010
CohIracI Cleahihg 21 2010
Cookihg & LaIihg HabiIs 6 2009
Cookihg Sauces & Food
Seasohihgs 4 2010
CorporaIe & PromoIiohal
Ci!Iware 4 2011
CosmeIic Surgery 9 2011
CosmeIics & Fragrahces 24 2011
Courier & Lxpress Services 16 2010
Cruise MarkeI 2 2008
CusIomer Magazihes & CohIracI
Publishihg 4 2009
DigiIal 8roadcasIihg 1he Key NoIe Rahge o! ReporIs
CusIomer RelaIiohship
MahagemehI 4 2008
CusIomer Services ih Fihahcial
OrgahisaIiohs 5 2010
D
DebI MahagemehI (Commercial
& Cohsumer) 6 2010
De!ehce LquipmehI 11 2010
DieI Foods 4 2011
DigiIal 8roadcasIihg 5 2011
DigiIal CommuhicaIiohs 1 2009
DirecI Ihsurahce 6 2010
DirecI MarkeIihg 19 2009
DirecI MorIgages 7 2010
DiscouhI ReIailihg 7 2009
Disposable Paper ProducIs 13 2009
DisIribuIioh IhdusIry 10 2009
DIY & Home ImprovemehIs
IhdusIry 11 2009
DomesIic HeaIihg 14 2009
Drihks MarkeI 19 2009
E
L-Commerce: 1he IhIerheI
Crocery MarkeI 6 2009
L-Commerce: 1he IhIerheI
Leisure & LhIerIaihmehI MarkeI 5 2008
LlecIrical CohIracIihg 9 2009
LlecIrical Wholesale 5 2009
LlecIriciIy IhdusIry 7 2011
LlecIrohic 8ahkihg 4 2008
Lhergy IhdusIry 8 2010
LquipmehI !or Ihe Disabled 5 2009
LsIaIe AgehIs 18 2011
LsIaIe AgehIs ahd Services 5 2010
LIhhic Foods 16 2011
Luropeah Lohg-1erm Ihsurahce 4 2008
Luropeah Rehewable Lhergy 2 2008
Luropeah ShorI 8reaks 2 2008
Luropeah 1elecommuhicaIiohs 3 2010
Luropeah 1ourisI AIIracIiohs 3 2010
Luropeah 1rehds ih Food
Shoppih 4 2009
LxhibiIiohs & Coh!erehces 12 2011
F
FasI Food & Home Delivery
OuIleIs 4 2010
Film MarkeI 2 2009
Fihahcial Services MarkeIihg Io
8Cs 1 2009
DLs 2009
SIarI-Up 8usihesses ahd Ihe Sel!-
Lmployed 3 2010
Ihe A!!luehI 1 2009
Fihahcial Services OrgahisaIiohs
oh Ihe IhIerheI 4 2009
Fish & Fish ProducIs 14 2010
Food IhdusIry 20 2010
FooIball Clubs & Fihahce 4 2009
FooIwear 16 2009
ForecourI ReIailihg 8 2010
Frahchisihg 12 2010
FreighI Forwardihg 17 2009
Frozeh Foods 25 2011
FruiI & VegeIables 22 2011
FruiI 1uices & HealIh Drihks 13 2010
FuhcIiohal Foods 6 2010
FurIher & Higher LducaIioh 6 2009
G
Cardeh LquipmehI 13 2009
Cas IhdusIry 6 2011
Ceheral Ihsurahce 13 2010
Ci!Iware 19 2010
Classware 15 2009
Creeh ahd LIhical Cohsumer 4 2008
CreeIihgs Cards Plus 26 2010
Crey Cohsumer 5 2009
H
Hahd Luggage & LeaIher Coods 15 2010
HealIh Clubs & Leisure CehIres 10 2010
HealIhy LaIihg 6 2008
Holiday Purchasihg PaIIerhs 5 2009
Home LhIerIaihmehI 3 2008
Home Furhishihgs 20 2011
Home Shoppihg 14 2011
HorIiculIural ReIailihg 17 2008
HoI 8everages 5 2009
HoIels 25 2011
Housebuildihg 19 2011
Household Appliahces (8rowh
Coods) 11 2008
Household Appliahces (WhiIe
Coods) 16 2008
Household DeIergehIs &
Cleahers 2010
Household FurhiIure 19 2011
l
Ice Creams & Frozeh DesserIs
UpdaIe 15 2011
IhdepehdehI Fihahcial Advisers 4 2008
Ihsurahce Compahies 12 2009
Ihsurahce IhdusIry 10 2009
Ihsurahce ProspecIs 2 2008
IhIerheI & 1elephohe 8ahkihg 1 2011
IhIerheI AdverIisihg 6 2009
I1 RecruiImehI 5 2010
I1 SecuriIy 10 2011
I1 1raihihg 13 2010
1
1ewellery & WaIches 26 2011
K
KiIchehware 7 2009
L
LaboraIory LquipmehI 10 2011
Leisure ih Ihe Home 3 2010
Leisure OuIside Ihe Home 3 2010
Li!esIyle Magazihes 5 2011
Lihgerie 10 2011
Local CoverhmehI Services 3 2010
Low-FaI & Reduced-Sugar Foods 5 2008
N
MarkeIihg ih Ihe DigiIal Age 3 2009
MeaI & MeaI ProducIs 21 2010
Medical LquipmehI 17 2009
Meh ahd Womeh's 8uyihg HabiIs 5 2008
Meh's 1oileIries & Fragrahces 5 2008
MeIal Recyclihg 6 2011
Milk & Dairy ProducIs 24 2010
Mobile MarkeIihg 1 2009
Mobile Phohes 7 2010
MoIor Fihahce 4 2011
MoIor IhdusIry 12 2008
Music IhdusIry 2 2010
N
Newspapers 18 2010
Noh-Food Sales ih SupermarkeIs 5 2010
Noh-MeIal Recyclihg 3 2010
NuIraceuIicals 3 2008
O
O!!ice LquipmehI IhdusIry 9 2010
O!!ice FurhiIure 21 2008
O!!shore Oil & Cas IhdusIry 5 2009
OphIhalmic Coods & Services 17 2010
OpIiciahs & OpIical Coods 5 2010
Orgahic Food & Drihk 7 2010
O1C PharmaceuIicals 15 2011
Over-50s Cohsumer 1 2009
Owh 8rahds 13 2010
P
Packagihg (Food & Drihk) 6 2010
Packagihg (Class) 13 2008
Packagihg (Paper & 8oard) 15 2010
Packagihg (PlasIics) 15 2010
Pehsiohs 6 2009
Persohal Lihes Ihsurahce 4 2010
Persohal Loahs 4 2008
PeI MarkeI 4 2009
PharmaceuIicals IhdusIry 6 2008
Plahhihg !or ReIiremehI 1 2008
Plus-Size Fashioh 3 2009
PoulIry 4 2009
Premium Lagers, 8eers & Ciders 9 2010
PrihIihg 16 2011
PrivaIe HealIhcare 22 2011
ProIecIive CloIhihg & LquipmehI 7 2009
Public Houses UpdaIe 27 2011
Publishihg IhdusIry 13 2010
R
Rail 1ravel 8 2011
Ready Meals 12 2011
RecruiImehI Agehcies
(PermahehI) 11 2011
RecruiImehI Agehcies
(1emporary & CohIracI) 11 2011
Rehewable Lhergy 3 2009
ResIaurahIs 25 2011
ReIail Pharmacies 17 2011
Road Haulage 22 2009
Rural Lcohomy 2 2009
5
Sauces & Spreads 12 2010
Savihgs & IhvesImehIs 6 2010
SecuriIy IhdusIry 13 2010
Shop!iIIihg 14 2009
Shoppihg CehIres 3 2008
Sihgles MarkeI 4 2009
Slimmihg MarkeI 4 2011
Small 8usihesses & 8ahks 2 2010
Small DomesIic LlecIrical
Appliahces 12 2010
Shack Foods 20 2010
Social Media MarkeIihg 1 2010
So!I Drihks (CarbohaIed &
CohcehIraIed) 18 2011
Soup MarkeI 3 2009
SpiriIs & Liqueurs 1 2010
SporIs CloIhihg & FooIwear 13 2011
SporIs LquipmehI 16 2011
SporIs MarkeI 13 2010
SporIs Spohsorship 8 2011
SIaIiohery (Persohal & O!!ice) 25 2010
SupermarkeI Owh Label 4 2009
SweeI & SalIy Shacks 16 2010
I
1ake-Home 1rade 18 2011
1eehage & Pre-1eeh Magazihes 4 2009
1eehage Fashiohwear 2 2008
1imber & 1oihery 19 2008
1oileIries 24 2011
1oys & Cames 24 2010
1raihihg 19 2011
1ravel & 1ourism MarkeI 17 2010
1ravel AgehIs & Overseas 1our
OperaIors 23 2010
1rehds ih Food Shoppihg 5 2008
1yre IhdusIry 5 2010
U
UK IhIerheI MarkeI 1 2009
UIiliIies 4 2010
V
VegeIariah Foods 6 2009
Vehicle 8reakdowh Services 6 2010
Vehicle SecuriIy 9 2010
Video Camihg 1 2011
ViIamihs, Miherals &
SupplemehIs 6 2009
W
Wallcoverihgs & Ceramic 1iles 18 2010
WasIe MahagemehI 11 2011
WaIer IhdusIry 6 2011
Wihdows & Doors 20 2010
Wihe 21 2011
Workihg Womeh 5 2009
.H\1RWH$UFKLYH5HSRUWV
A
Aerospace 12 2003
Agrochemicals & FerIilisers 3 2002
Air FreighI 2 2005
Air 1rahsporI LogisIics 1 2003
All Ihclusive Holidays 1 2000
Ahimal FeedsIu!!s 11 2001
Audio Visual ReIailihg 1 2000
B
8aby Foods 3 2006
8aIhs ahd Showers 1 2000
8earihgs 2 2007
8eds, 8edrooms ahd UpholsIered
FurhiIure 2 2000
8oIIled WaIer 2 2001
C
Cable & SaIelliIe 1V 10 2004
Call CehIres 6 2006
Cash & Carry OuIleIs 16 2001
ChariIy Fuhdihg 3 2005
Cihemas & 1heaIres 9 2001
CloIhihg ReIailers 1 2000
Commercial Radio 8 2004
Cohsumer 8orrowihg ih Lurope 1 2004
Cohsumer IhIerheI Usage 4 2000
CohIracIed-OuI Services 3 2007
Cohvehiehce ReIailihg 12 2002
CorporaIe HospiIaliIy 6 2007
Cross-8order Shoppihg 1 2000
CusIomer LoyalIy ih Ihe Fihahcial
Services 1 2000
D
Dark SpiriIs & Liqueurs 3 2004
De!ehce IhdusIry 7 2003
Desigh CohsulIahcies 3 2000
DigiIal 1V 2 2003
DINKY MarkeI 3 2007
DocumehI Imagihg SysIems 1 2007
DomesIic 1elecommuhicaIiohs 4 2006
Dry Cleahihg & Lauhdry Services 5 2005
E
LlecIrohic CompohehI
DisIribuIioh 12 2002
LlecIrohic CompohehI
Mahu!acIurihg 11 2002
LlecIrohic Cames 4 2003
LquipmehI Leasihg 12 2003
L-RecruiImehI 3 2006
L-Shoppihg 1 2002
Luropeah LlecIriciIy IhdusIry 3 2007
Luropeah Cas IhdusIry 3 2007
Luropeah Oil & Cas IhdusIry 2 2007
Luropeah WaIer IhdusIry 3 2007
LxIehded Fihahcial Families 1 2005
F
FacIorihg & Ihvoice DiscouhIihg 2 2003
Fihahce Houses 11 2000
A8C1s 1 2000
A8s 4 2006
C1C2DLs 1 2004
Over 60s 1 2004
Ihe ReIired ahd Llderly 3 2007
Fire ProIecIioh LquipmehI 8 2006
FiIIed KiIchehs 11 2007
Free-1o-Air 1V 8 2004
G
CeheraIioh Y 1 2007
Clobal PosiIiohihg SysIems 1 2002
Clobal WasIe mahagemehI 2 2070
H
HealIh Foods 22 2003
HealIhcare MarkeI 10 2005
HeaIihg, VehIilaIihg & Air
CohdiIiohihg 9 2002
l
Ih-Car LhIerIaihmehI 1 2000
Ihdividual Savihgs AccouhIs 2 2005
IhdusIrial FasIehers 8 2001
IhdusIrial Pumps 5 2000
IhdusIrial Valves 8 2001
IhIerheI Service Providers 2 2005
IhIerheI Usage ih 8usihess 8 2005
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Li!e Assurahce MarkeI 2 2002
Issues ih Higher LducaIioh
Fuhdihg 2 2006
L
Leisure & RecreaIioh MarkeI 15 2005
LighIihg LquipmehI 14 2002
N
MahagemehI CohsulIahIs 10 2003
MarkeIihg Io Childreh 4-11 3 2003
Mechahical Hahdlihg 9 2001
Medical & HealIh Ihsurahce 3 2007
Millehium YouIh 2 2002
Mobile 1elecommuhicaIiohs 2 2007
N
NaIural ProducIs 2 2007
New Media MarkeIihg 3 2002
O
O!!-1rade SpiriIs 3 2004
Orgahic 8aby & 1oddler Care 1 2007
Over-40s Cohsumer 2 2005
P
Packagihg (MeIals & Aerosols) 12 2003
Paper & 8oard Mahu!acIurers 14 2002
Passehger 1ravel ih Ihe UK 5 2007
Pay 1V 2 2004
Pehsioh LxIehders 1 2002
Persohal 8ahkihg 1 2003
PhoIocopiers & Fax Machihes 14 2005
PlahI Hire 13 2007
PlasIic Cards ih Lurope 2 2005
PlasIics Processihg 10 2003
Power 1ools 5 2007
Pre-School Childcare 1 2001
PrivaIe-SecIor OpporIuhiIies ih
LducaIioh 2 2001
Process PlahI IhdusIry 1 2000
Public RelaIiohs IhdusIry 3 2007
Public 1rahsporI 1 2001
R
Rail 1rahsporI LogisIics 1 2003
Railway IhdusIry 2 2006
Recyclihg ahd Ihe LhvirohmehI 1 2000
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ReIail DevelopmehI 1 2001
Road 1rahsporI LogisIics 1 2003
5
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ShorI 8reak Holidays 4 2001
ShorI 8reaks 2 2004
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Small O!!ice Home O!!ice
Cohsumer 1 2001
Small O!!ice Home O!!ice
ProducIs 1 2001
Spohsorship 2 2000
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SupermarkeIs & SupersIores 20 2003
I
1eehage Magazihes 3 2007
1elecommuhicaIiohs 21 2007
1eleworkihg 2 2003
1he CompuIer MarkeI 11 2004
1he Film IhdusIry 4 2002
1he Fish IhdusIry 1 2001
1he Legal Services MarkeI 1 2005
1he Luggage MarkeI 1 2000
1he Newspaper IhdusIry 3 2005
1ourisI AIIracIiohs 5 2001
1rehds ih Leisure AcIiviIies 4 2007
1weehagers 1 2001
V
Video & DVD ReIail & Hire 8 2005
Videocoh!erehcihg 4 2007
W
WaIer 1rahsporI LogisIics 1 2003
WhiIe Coods 2 2000
WhiIe SpiriIs 1 2005
Womeh over 45 3 2007
Key Note Ltd 2011
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